Copper Fundamental Forecast – January 26, 2016

Analysis and Recommendations:

Copper added 5 points to trade at 2.008 remaining near its lowest trading level as worries over future demand weakened the commodity after the IMF downgraded growth for 2016.  The declining amounts of physical copper mean that liquidity in the metal is evaporating, resulting in violent, sharp price swings. The amount of metal available in warehouses has dropped more than 40 percent since August, making it costly to roll shorts.

The commodities market has grown in importance since the 1990s, with more investors, traders and merchants buying futures, hedging positions, speculating and generally getting the most out of the complex financial instruments that make up the commodities market. With all the activity, people dependent on futures to remove risk have raised concerns over large speculators manipulating the markets. In this article we’ll look to the past for one of the biggest cases of market manipulation in commodities and what it meant to the future of futures.

However, a firm trend in the base metals pack at the London Metal Exchange (LME) on hints that the European Central Bank may bolster stimulus in March, easing concerns over global growth, capped the losses.

Analysts said copper prices fell in line with a weak trend in metal at the domestic spot markets amid muted demand from consuming industries but gains in the base metals at the LME, restricted losses.

Globally, copper for delivery in three months was little changed at $4,426 a metric tonne at the LME. It had advanced 1.6% in yesterday’s trade.

FxEmpire provides in-depth analysis for each asset we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports, which covers the current week and are published by Sunday before the new week begins. Daily we share any new events, forecasts or analysis that affect the current day. To achieve a full accurate understanding it is important that you study all of our data and analysis as a whole.

Today’s economic releases:

 

Upcoming Economic Events that you should be monitoring:

Tuesday, January 26, 2016

Government Bond Auctions

Date Time and Country

Jan 25 11:30 Germany EUR 1.5bn Jan 2017 Bubill

Jan 25 13:00 Norway Details of bond auction on Jan 27

Jan 25 17:20 Italy Details of BTP/CCTeus on 28 Jan

Jan 26 11:10 Italy Holds CTZ/linker bond auction

Jan 26 n/a US Holds 2-year note auction

Jan 27 11:05 Norway Holds bond auction

Jan 27 11:30 Germany EUR 1bn 2.5% Aug 2046 Bund

Jan 27 17:20 Sweden Details of bond auction on 03 Feb

Jan 27 n/a US Holds 2-year FRN auction

Jan 27 n/a US Holds 5-year note auction

Jan 28 11:03 Sweden Holds I/L bond auction

Jan 28 11:10 Italy Holds BTP/CCTeus auction

Jan 28 n/a US Holds 7-year note auction

Feb 02 n/a UK Details of Gilt auctions on Feb 09 & 11