Advertisement
Advertisement
Copper Fundamental Analysis – week of September 12, 2016 – Forecast
By:
Copper ended the week at 2.089 and remains a strong sell leading into next week as the US dollar will weigh on the metal. Copper inventories remain high
Copper ended the week at 2.089 and remains a strong sell leading into next week as the US dollar will weigh on the metal. Copper inventories remain high and weak Chinese data has had an effect. Copper dipped 0.87% on the week. Traders said evidence of consumer buying could be seen in China premiums for copper and nickel that have this week climbed off their lows, while the gap between local and international prices has also narrowed, making imports more attractive.
The seasonal uplift comes as copper prices drag along a cyclical bottom where investors increasingly view prices as attractive, despite expectations of a surplus this year.
Copper production in Democratic Republic of Congo, Africa’s top producer, will fall an estimated1.7 percent in 2016 to 978,414 tonnes due to low prices, the chamber of mines said in a report on Friday. Falling output and prices of copper and other commodities have forced the government to slash its economic growth projection for this year to 4.3 percent, from 9 percent previously. The budget has also been cut by 22 percent.
FxEmpire provides a wide variety of analysis on a daily, weekly and monthly basis ranging from our exceptional technical analysis as well as our in-depth fundamental analysis along with our daily news and market updates. To get the best understanding of each asset it is important to review the short term daily analysis with the longer term monthly reports. To get email notification when each of these are posted please sign up for our daily newsletter.
This Week’s Economic Events That You Should Be Monitoring:
| Date | Country | Name | Volatility | Previous | Consensus |
| 9/13/2016 | GBP | Core Consumer Price Index | 3 | 1.3 | 1.4 |
| 9/13/2016 | GBP | Consumer Price Index (YoY) | 3 | 0.6 | 0.7 |
| 9/13/2016 | EUR | ECB President Draghi’s Speech | 3 | ||
| 9/13/2016 | EUR | ZEW Survey – Economic | 3 | 4.6 | 6.7 |
| 9/14/2016 | NZD | Gross Domestic Product (YoY) | 3 | 2.8 | |
| 9/15/2016 | AUD | Employment Change | 3 | 26.2 | 15 |
| 9/15/2016 | AUD | Unemployment Rate | 3 | 5.7 | 5.7 |
| 9/15/2016 | CHF | SNB Interest Rate Decision | 3 | -0.75 | -0.75 |
| 9/15/2016 | CHF | SNB press conference | 3 | ||
| 9/15/2016 | GBP | BoE Asset Purchase Facility | 3 | 435 | 435 |
| 9/15/2016 | GBP | BoE Interest Rate Decision | 3 | 0.25 | 0.25 |
| 9/15/2016 | GBP | Monetary Policy Summary | 3 | ||
| 9/15/2016 | GBP | BOE MPC Vote Cut | 3 | 9 | 0 |
| 9/15/2016 | GBP | BOE MPC Vote Unchanged | 3 | 0 | 9 |
| 9/15/2016 | GBP | BOE MPC Vote Hike | 3 | 0 | 0 |
| 9/15/2016 | GBP | Bank of England Minutes | 3 | ||
| 9/15/2016 | USD | Retail Sales (MoM) | 3 | 0 | 0 |
| 9/16/2016 | USD | Consumer Price Index (YoY) | 3 | 0.8 | 1 |
| 9/16/2016 | USD | Consumer Price Index ECORE | 3 | 2.2 | 2.2 |
| 9/16/2016 | USD | Michigan Consumer Sentiment | 3 | 89.8 | 91 |
Government Bond Auctions
Date Time Country Auction
Sep 12 11:30 Germany Eur 2bn Mar 2017 Bubill
Sep 12 13:00 Norway Details of bond auction on Sep 14
Sep 13 11:00 Netherlands Eur 2-3bn 0% Jan 2022 DSL
Sep 13 11:10 Italy Holds bond auction
Sep 14 11:05 Norway Holds bond auction
Sep 14 11:30 UK 0.125% 2046 I/L Gilt
Sep 14 11:30 Germany Eur 1bn 2.5% Jul 2044 Bund
Sep 15 10:30 Spain Holds bond auction
Sep 15 11:03 Sweden Holds I/L bond auction
Sep 15 11:50 France Holds bond auction
About the Author
Barry Normanauthor
Advertisement