Industrial and Base Metals Fundamental Analysis – August 6, 2015 – Forecast – Copper, Palladium & More

By:

Published: Aug 5, 2015, 14:51 UTC

Industrial and Base Metals Fundamental Analysis – August 6, 2015 – Forecast – Copper, Palladium & More Analysis and Recommendations: Copper had no

Industrial and Base Metals Fundamental Analysis – August 6, 2015 – Forecast – Copper, Palladium & More

Analysis and Recommendations:

Copper had no support today as the US dollar and weak data weighed on the commodity. Traders continue to stress over Chinese data after Services PMI printed on a weak note. Copper fell 14 points to 2.348. Palladium got hit hard by weaker auto sales to trade at 594.10 down by $4.50. “Palladium continues to float right below the 600 (dollar) mark making people wonder how this metal lost so much of its luster. It’s quite possible that this is a bargain but even consumers have not been coming out to buy the metal,” said Miguel Perez-Santalla, sales and marketing manager with Heraeus Metals New York LLC, in a note to clients.

Copper slipped back on Wednesday towards six-year lows as the dollar rose on heightened expectations the US Federal Reserve could raise interest rates in September and amid a bearish backdrop for China demand.

Atlanta Federal Reserve President Dennis Lockhart said it would take “significant deterioration” in the US economy for him to not support a rate hike in September, lifting the dollar, and eroding purchasing power for buyers with other currencies.

Commodities demand growth is already suffering from slowing factory growth in China as its switch to a service-led economy blunts manufacturing demand and threatens to pin back economic growth to the weakest pace in a quarter of a century.

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
CNY	Caixin Services PMI (Jul)		53.8	52.2	51.8
RUB	Markit Services PMI (Jul)		51.6	49.2	49.5
CHF	CPI (MoM) (Jul)		-0.6%	-0.4%	0.1%
EUR	Spanish Services PMI (Jul)		59.7	55.5	56.1
EUR	German Services PMI (Jul)		53.8	53.7	53.7
EUR	Markit Composite PMI (Jul)		53.9	53.7	53.7
EUR	Services PMI (Jul)		54.0	53.8	53.8
GBP	Services PMI (Jul)		57.4	58.0	58.5
EUR	Retail Sales (MoM) (Jun)		-0.6%	-0.3%	0.1%

Upcoming Economic Events that you should be monitoring:

Thursday, August 6, 2015

Cur.	Event	Actual	Forecast	Previous
AUD	Employment Change (Jul)		15.0K	7.3K
GBP	Manufacturing Production (Jun)		0.2%	-0.6%
GBP	BoE Inflation Report
GBP	Interest Rate Decision (Aug)		0.50%	0.50%
GBP	BoE MPC Meeting Minutes
GBP	BoE Gov Carney Speaks