Analysis and Recommendations: Copper traded at 2.318 almost flat for the day. Palladium dipped $2.52 as rumors of a larger VW recall upset sales. Copper
Copper traded at 2.318 almost flat for the day. Palladium dipped $2.52 as rumors of a larger VW recall upset sales. Copper bounced higher after yesterday’s recovery, headed toward 2.3305 resistance level. Gains in Asian equities have been uplifting to copper prices and today are no exception. Copper volatility has fallen sharply since the beginning of October, while copper traded range-bound on COMEX. Nevertheless, outlook for China’s economy remains influential and a source of downward pressure to copper prices.
Falling copper stocks in warehouses tracked by London Metal Exchange have been a saving grace coming from lower prices and uncertain demand. The waning supply may retain copper above the 2.200 floor.
London copper edged down on Tuesday on festering worries over demand in top metals consumer China, but aluminium prices gained as U.S. producing giant Alcoa Inc cut output to attack a supply glut.
Stronger Chinese appetite for copper in recent weeks is unlikely to last, according to industry sources.
The Caixin/Markit China Manufacturing Purchasing Managers’ Index (PMI) for October came in at 48.3 on Monday, showing factory activity shrinking for the eighth consecutive month. However, the export component rose to 50.7, the first expansion since June.
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. |
Imp. |
Event |
Actual |
Forecast |
Previous |
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Japan – Culture Day |
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AUD |
Interest Rate Decision (Nov) |
2.00% |
2.00% |
2.00% |
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AUD |
RBA Rate Statement |
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GBP |
Construction PMI (Oct) |
58.8 |
58.8 |
59.9 |
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NZD |
GlobalDairyTrade Price Index |
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-3.1% |
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USD |
Factory Orders (MoM) (Sep) |
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-0.9% |
-1.7% |
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EUR |
ECB President Draghi Speaks |
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Upcoming Economic Events that you should be monitoring:
Wednesday, November 4, 2015
Cur. |
Event |
Actual |
Forecast |
Previous |
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USD |
API Weekly Crude Oil Stock |
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4.100M |
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NZD |
Unemployment Rate (Q3) |
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6.0% |
5.9% |
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AUD |
Retail Sales (MoM) (Sep) |
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0.4% |
0.4% |
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AUD |
Trade Balance (Sep) |
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-3.000B |
-3.095B |
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CNY |
Caixin Services PMI (Oct) |
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50.8 |
50.5 |
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GBP |
Halifax House Price Index (MoM) |
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-0.7% |
-0.9% |
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EUR |
German Services PMI (Oct) |
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55.2 |
55.2 |
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EUR |
ECB President Draghi Speaks |
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USD |
FOMC Member Brainard Speaks |
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USD |
ADP Nonfarm Employment Change |
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180K |
200K |
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USD |
Trade Balance (Sep) |
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-41.10B |
-48.30B |
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USD |
Services PMI (Oct) |
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54.6 |
54.4 |
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USD |
Fed Chair Yellen Testifies |
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USD |
Crude Oil Inventories |
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3.376M |
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USD |
FOMC Member Dudley Speaks |
Government Bond Auctions
Date Time Country
Nov 03 10:10 Austria Holds RAGB bond sale
Nov 04 15:30 Sweden Announces details of Bond on 11 Nov
Nov 04 N/A Holland Announces details of Bond on 10 Nov
Nov 05 09:30 Spain Auctions Bonos
Nov 05 09:50 France Auctions OATs
Nov 05 10:03 Sweden Holds I/L bond auction
Nov 09 12:00 Norway Details bond auction on 11 Nov
Nov 09 15:30 Italy Announces details of BTPs/CCTeu on 12 Nov
Nov 09 N/A US Holds 3-year note auction
Nov 10 10:30 UK 0.125% 2058 I/L Gilt auction
Nov 10 N/A Holland Eur 2.0-3.0bn 0% Apr 2018 DSL
Nov 10 N/A US Holds 10-year note auction
Nov 11 10:03 Sweden Holds bond auction
Nov 11 11:15 Norway Holds bond auction
Nov 11 10:30 Germany Eur 3bn 0.25% Oct 2020 Bobl
Nov 12 10:10 Italy Auctions BTPs/CCTeus
Nov 12 10:30 UK 4.25% 2039 Gilt auction
Nov 12 N/A US Holds 30-year bond auction