Copper Fundamental Forecast – March 24, 2016

May Comex High Grade Copper futures plunged on Wednesday. The selling pressure was triggered by the firmer U.S. Dollar and risk aversion following the attacks in Brussels on Tuesday. The selling subsided somewhat after the release of friendly housing news from China.

The sell-off was somewhat exaggerated by the thin trading conditions ahead of the Easter holiday weekend. Many of the major funds were on the sidelines, creating light volume conditions that created pockets of volatility.

The Greenback was stronger because of hawkish comments from several Fed members this week. Some even called for a possible rate hike in April, nearly a week after the issuance of a dovish monetary policy statement and outlook for the economy.

Prices in the U.S. were also affected by three-month copper futures on the London Exchange that traded down 1-percent to $5,042 a tonne.

On the positive side, traders are anticipating demand in China to begin picking up due to the stimulus that was implemented late last year. Additionally, a further drop in stocks of copper in LME monitored warehouses to 150,675 tonnes provided support, along with supply cuts by major firms such as Glencore, and Freeport-McMoRan.

It looks as if traders are taking a break from the traditional fundamentals and focusing on the movement in the U.S. Dollar today. This should lead to downside pressure especially because of the low volume on this holiday-shortened week.

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:

Thursday, March 24, 2016

Government Bond Auctions

Date Time and Country

Mar 23 11:30 UK Gbp 0.35bn 0.125% Mar 2068 I/L Gilt

Mar 23 11:30 Germany Eur 1bn 2.5% Aug 2046 Bund

Mar 23 17:20 Italy Details of bond auction

Mar 23 17:20 Sweden Details of bond auction on Mar 30

Mar 23 16:30 US Usd 13bn 2-year FRNs

Mar 24 11:10µ Italy Holds zero-coupon/BTP€i auction

Mar 28 19:00 US Holds 2-year notes auction

Mar 29 19:00 US Holds 5-year notes auction

Mar 30 11:03 Sweden Holds bond auction

Mar 30 11:10 Italy Holds bond auction

Mar 30 11:30 Germany Eur 4bn Apr 2021 Bobl

Mar 30 19:00 US Holds 7-year notes auction

Mar 31 17:20 Sweden Details of I/L auction on Apr 07

Apr 01 N/A Italy Details of new BTP€i on Apr 04