Industrial and Base Metals Fundamental Analysis – August 28, 2015 – Forecast – Copper, Palladium & More

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Published: Aug 27, 2015, 14:06 UTC

Analysis and Recommendations: Copper recovered adding 34 points to trade at 2.282 as traders watched the reaction from China as the PBOC continued to

Industrial and Base Metals Fundamental Analysis – August 28, 2015 – Forecast – Copper, Palladium & More

Analysis and Recommendations:

Copper recovered adding 34 points to trade at 2.282 as traders watched the reaction from China as the PBOC continued to flood the markets and banks with money. Palladium added $10.25 to 539.90.

A first glance at the London Metal Exchange copper price would suggest a market in trouble, but delve beneath the surface and a different picture emerges – one that may well deter speculators from betting on further deep losses.

The slow ramp up of an ambitious waste disposal system and an inexperienced workforce have been key factors curbing output at a remote Chilean mine built by Japan’s top copper smelter Pan Pacific Copper, according to a consultant’s report.

Copper rebounded from a six-year low as China, the world’s top metals user, cut interest rates to spur economic growth and stem a rout in its equities that sent shock waves through global financial markets.

The People’s Bank of China’s fifth rate cut since November and its move to lower the amount of cash banks must set aside, also spurred a rally in equities and emerging market currencies. In the U.S., the second-largest copper user, purchases of new homes rebounded in July. Builders are the biggest consumers of the metal.

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
AUD	Private New Capital Expenditure	-4.0%	-2.5%	-4.7%
GBP	Nationwide HPI (MoM) (Aug)	0.3%	0.4%	0.4%
GBP	Nationwide HPI (YoY) (Aug)	3.2%	3.1%	3.5%
EUR	Spanish GDP (QoQ) (Q2)	1.0%	1.0%	1.0%
RUB	Central Bank reserves (USD)			362.9B

Upcoming Economic Events that you should be monitoring:

Friday, August 28 2015

Cur.	Event	Actual	Forecast	Previous
JPY	Household Spending (YoY) (Jul)		1.3%	-2.0%
JPY	Household Spending (MoM) (Jul)		2.2%	-3.0%
JPY	National Core CPI (YoY) (Jul)		-0.2%	0.1%
JPY	Tokyo Core CPI (YoY) (Aug)		-0.2%	-0.1%
JPY	Retail Sales (YoY) (Jul)		1.1%	0.9%
CHF	GDP (YoY) (Q2)		0.9%	1.1%
CHF	GDP (QoQ) (Q2)		-0.1%	-0.2%
EUR	Spanish CPI (YoY) (Aug)		-0.1%	0.1%
EUR	Spanish HICP (YoY) (Aug)		-0.2%	0.0%
GBP	Business Investment (QoQ)		1.7%	2.0%
GBP	GDP (QoQ) (Q2)		0.7%	0.7%
EUR	German CPI (MoM) (Aug)		-0.1%	0.2%
USD	Core PCE Price Index (MoM) (Jul)		0.1%	0.1%
USD	Goods Trade Balance (Jul)			-62.26B
USD	Personal Spending (MoM) (Jul)		0.4%	0.2%
CAD	RMPI (MoM) (Jul)		-4.0%	0.0%
USD	Michigan Consumer Expectations			83.8