Industrial and Base Metals Fundamental Analysis – November 9, 2015 – Forecast – Copper & Palladium

Analysis and Recommendations:

Copper dipped 9 points to trade at 2.246 as the US dollar continued to rally and Palladium drifted 50 points to 605.80. As the greenback rose to its highest level against a basket of global currencies in over two months, after Federal Reserve Chairwoman Janet Yellen pointed to a possible December interest rate hike, copper futures plummeted to a one month low.

The US dollar continued to rally today after the Nonfarm payroll report saw a huge jump well above forecast in private and public sectors.

Copper sank to its lowest price in a month on Thursday and other base metals also slipped on the prospects of a December US interest rate hike, which boosted the dollar. Zinc and lead touched their weakest levels in nearly a month as metals also felt the impact of persistent worries about global economic growth and soggy metals demand.

“The main driver behind the drop in prices must be the speeches of the Fed officials, driving the dollar higher and weighing on the wider commodity space,” said analyst Daniel Briesemann at Commerzbank in Frankfurt.

Federal Reserve Chair Janet Yellen on Wednesday pointed to a possible December interest rate “liftoff”, sending the dollar surging to a three-month high.

A firmer dollar often curbs demand for commodities, making them more expensive for buyers outside the United States since they are priced in the US currency.

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:

 

Upcoming Economic Events that you should be monitoring:

Monday, November 9, 2015

Government Bond Auctions

Date Time Country

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