Metals Pack Fundamental Analysis October 10, 2014 Forecast – Silver & Copper

Analysis and Recommendations: Short-covering helped boost December Comex High Grade Copper early in the session on Thursday, but traders were unable to hold on to gains, suggesting the move was triggered by short-covering rather than new buying.

December Comex Silver futures spiked higher after Wednesday’s weak close. The early strength was prompted by early weakness by the U.S. Dollar. Silver was able to post a higher close, but it was well off its highs as the session ended. The selling pressure hit the market as the dollar rebounded from its intraday weakness.

Copper remains bearish, but oversold. The weakness stems from the lack of demand which is being fueled by the weakening global economy, particularly China.

Silver weakened after European Central Bank President Mario Draghi hinted at expanding stimulus measures. He also said inflation was “excessively low”. Low inflation is not good for silver which is commonly used as a hedge against high inflation.

Draghi’s comments pressured the Euro which supported the dollar, leading to the sell-off in dollar-denominated silver.

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 up to the data analysis and information in our weekly reports. 

Today’s Economic Releases 

                Currency                                                  Event                                                     Forecast        Previous

                 

                 EUR                                          French Industrial Production                                 -0.2%             0.2%

                 GBP                                          Trade Balance                                                       -9.6B             -10.2B

                 CAD                                          Employment Change                                            18.7K            -11.0K

                 CAD                                          Unemployment Rate                                              7.0%              7.0%

                 USD                                          Import Prices m/m                                                -0.5%             -0.9%

                 USD                                          FOMC Member Plosser Speaks

                 ALL                                           IMF Meetings

                 CAD                                          BOC Business Outlook Survey

                 ALL                                           G20 Meetings

                 USD                                          FOMC Member Fisher Speaks