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

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Published: Nov 5, 2015, 12:37 UTC

Analysis and Recommendations: Copper took a beating today falling 48 points to 2.274 its lowest point this winter while Palladium fell almost $10 to

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

Analysis and Recommendations:

Copper took a beating today falling 48 points to 2.274 its lowest point this winter while Palladium fell almost $10 to 614.00 as the VW DeiselGate scandal widens. Copper retreated toward a support level at 2.3165 together with oil while US dollar advanced. It reached a weekly high of 2.3620 in the US earlier as Glencore announced production cut and China equities rallied for a second day.

The world’s third largest copper miner said it will cut another 55,000 metric tons of output through 2017. Stock rally in China and Japan during the day helps to contain copper’s downside. The Shanghai Composite has gained 6.8 percent since yesterday’s open.

However, strength in the US dollar after Federal Reserve chair Janet Yellen said a rate hike in December was a “live” possibility, though not a certainty restricted sharp gains.

Zambia’s economy, which relies heavily on copper and its derivate products, is coming under strain as commodity prices drop and foreign investments wane. Worse, China’s economic slowdown has also weakened Zambia’s growth, as the two countries are close trading partners.

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	RBA Governor Stevens Speaks
JPY	Monetary Policy Meeting Minutes
USD	FOMC Member Stanley Fischer
AUD	RBA Assist Gov Lowe Speaks
EUR	German Factory Orders (MoM) (Sep)	-1.7%	1.0%	-1.8%
GBP	Halifax House Price Index (MoM) (Oct)	1.1%	0.6%	-0.9%
GBP	Halifax House Price Index (YoY) (Oct)	9.7%	9.5%	8.6%
EUR	ECB Economic Bulletin
EUR	Retail Sales (MoM) (Sep)	-0.1%	0.2%	0.0%
EUR	ECB President Draghi Speaks
GBP	BoE QE Total (Nov)	375B	375B	375B
GBP	Interest Rate Decision (Nov)	0.50%	0.50%	0.50%
GBP	BoE Gov Carney Speaks
USD	FOMC Member Dudley Speaks

Upcoming Economic Events that you should be monitoring:

Friday, November 6, 2015

Cur.	Event	Actual	Forecast	Previous
AUD	Monetary Policy Meeting Minutes
JPY	BoJ Governor Kuroda Speaks
EUR	German Industrial Production (MoM)		0.5%	-1.2%
GBP	Halifax House Price Index (MoM)		-0.7%	-0.9%
GBP	Industrial Production (MoM) (Sep)		-0.1%	1.0%
GBP	Manufacturing Production (MoM)		0.4%	0.5%
GBP	Trade Balance (Sep)		-10.60B	-11.15B
USD	FOMC Member Bullard Speaks
USD	Average Hourly Earnings (MoM) (Oct)		0.2%	0.0%
USD	Nonfarm Payrolls (Oct)		180K	142K
USD	Private Nonfarm Payrolls (Oct)		165K	118K
USD	Unemployment Rate (Oct)		5.1%	5.1%
GBP	NIESR GDP Estimate		0.6%	0.5%
USD	Baker Hughes U.S. Rig Count			578