Advertisement
Advertisement

Industrial and Base Metals Fundamental Analysis – August 19, 2015 – Forecast – Copper, Palladium & More

By:
Barry Norman
Updated: Aug 18, 2015, 11:29 UTC

Analysis and Recommendations: Copper fell to a low not seen in almost 7 years and is trading at 2.289 down by 32 points while Palladium dipped over $10 to

Industrial and Base Metals Fundamental Analysis – August 19, 2015 – Forecast – Copper, Palladium & More

Industrial and Base Metals Fundamental Analysis – August 19, 2015 – Forecast – Copper, Palladium & More
Industrial and Base Metals Fundamental Analysis – August 19, 2015 – Forecast – Copper, Palladium & More
Analysis and Recommendations:

Copper fell to a low not seen in almost 7 years and is trading at 2.289 down by 32 points while Palladium dipped over $10 to 603.60. Metals prices dropped across the board with copper sliding to a more-than-six-year low on concerns over future demand from China.

High-grade copper lost 3 cents, or 1.2%, to $2.29 a pound, setting it on track for its lowest settlement price since July 2009. On Monday, the industrial metal shaved off 1.3% against a backdrop of worries that China’s recent devaluation of the yuan will slow down the country’s import of copper. Like many other commodities, copper is traded in dollars, so a stronger greenback against the yuan means the metal gets more expensive for Chinese buyers.

“While speculation continues regarding the timing, rationale, and prognosis for further depreciation, macroeconomic data out of China are weak and will continue the pressure towards yuan devaluation,” analysts from Barclays said in a note on Monday.

But they reiterated their call that China’s copper consumption will increase year-over-year in 2015, based on a belief that the world’s second largest economy will stabilize in the second half of the year via stimulus measures.

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:

Cur.

 

Event

Actual

Forecast

Previous

 

  USD

 

TIC Net Long-Term Transactions (Jun)

103.1B

23.0B

93.0B

 

 

  AUD

 

Monetary Policy Meeting Minutes

 

 

 

 

 

  GBP

 

CPI (YoY) (Jul)

0.1%

0.0%

0.0%

 

 

  GBP

 

CPI (MoM) (Jul)

-0.2%

-0.3%

0.0%

 

 

  GBP

 

PPI Input (MoM) (Jul)

-0.9%

-1.9%

-1.8%

   

 

copper

Upcoming Economic Events that you should be monitoring:

Wednesday, August 19, 2015

Cur.

 

Event

Actual

Forecast

Previous

 

  USD

 

API Weekly Crude Oil Stock

 

 

-0.847M

 

 

  NZD

 

PPI Input (QoQ) (Q2)

 

 

-1.1%

 

 

  JPY

 

Exports (YoY) (Jul)

 

5.5%

9.5%

 

 

  JPY

 

Trade Balance (Jul)

 

-57B

-69B

 

 

  USD

 

Core CPI (YoY) (Jul)

 

1.8%

1.8%

 

 

  USD

 

Core CPI (MoM) (Jul)

 

0.2%

0.2%

 

 

  USD

 

CPI (MoM) (Jul)

 

0.2%

0.3%

 

 

  RUB

 

Unemployment Rate (Jul)

 

5.5%

5.4%

 

 

  USD

 

Crude Oil Inventories

 

 

-1.682M

   

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

 

About the Author

Did you find this article useful?

Advertisement