Industrial and Base Metals Fundamental Analysis – August 18, 2015 – Forecast – Copper & Palladium

Analysis and Recommendations:

Copper dipped 22 points to trade at 2.330 as the dollar strengthened and traders continued to worry about China, while Japans economy contracted farther this month. Palladium added 20 points to trade at 617.30. Copper drifted on Monday with traders alert to fresh measures by Beijing to shore up China’s economy, while a slightly stronger dollar capped gains.

China has been pushing local governments out of shadow banking and into the sunlight with a 2.6 trillion yuan ($407 billion) bond program, all in the name of financial reform. Investors, though, seem to like it just fine in the shadows and Beijing seems to be quietly encouraging them. China’s move to weaken the yuan last week could head off further similar “adjustments”, and the yuan is likely to move in both directions as the economy stabilizes, Ma Jun, chief economist at the central bank said on Sunday.

Hedge funds and money managers slightly reduced their net short position in copper by 827 lots to 32,720 lots in the latest week, U.S. Commodity Futures Trading Commission data showed on Friday.

FxEmpire provides in-depth analysis for each currency and commodity 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 recent analysis and information in our weekly reports.

Today’s economic releases:

 

Upcoming Economic Events that you should be monitoring:

Tuesday, August 18, 2015

Government Bond Auctions

Date Time Country

Aug 19 11:30 Germany Eur 5bn Sep 2017 Schatz

Aug 19 11:03 Sweden Holds bond auction

Aug 20 10:30 Spain Auctions Bonos/Obligaciones

Aug 20 11:30 UK Auctions 4.25% 2036 Gilt

Aug 21 17:30 Italy Announces details of CTZ/BTPei on 26 Aug