Metals Pack Fundamental Analysis October 2, 2014 Forecast – Silver & Copper

By:

Updated: Aug 24, 2015, 22:00 UTC

Analysis and Recommendations: Silver fell to its lowest level of the year at 16.987 down 70 points after touching low of 16.5 while Copper gained 12

Metals Pack Fundamental Analysis October 2, 2014 Forecast – Silver & Copper

Analysis and Recommendations:

Silver fell to its lowest level of the year at 16.987 down 70 points after touching low of 16.5 while Copper gained 12 points to trade at 3.020 against the stronger US dollar. The US dollar has gained 13 points to trade at 86.17. Copper prices fell to a five-month low after a gauge of Chinese manufacturing activity showed the country’s manufacturing sector expanding at a slower pace than previously thought, stoking worries about demand from the world’s top consumer of the metal.

The most actively traded contract, for December delivery, slid 1.6 per cent to US$3.0075 a pound, the lowest close since April 15 on the Comex division of the New York Mercantile Exchange.

The HSBC China Manufacturing Purchasing Managers’ Index in September was unchanged at 50.2 from August, below a preliminary reading indicating slightly higher growth that was released earlier this month. A reading above 50 indicates expansion, while a number below that threshold points to contraction. With China accounting for some 40 per cent of the world’s copper demand, the weaker-than-expected data was seen as bad news for the industrial metal.

Also hurting prices for copper was a burgeoning dollar, which hit a two-year high against the euro on weak eurozone inflation data Tuesday. Strength in the greenback is bad news for base metals, which are priced in dollars and tend to be more expensive for investors who use other currencies to buy the metal.

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 actual vs. forecast:

Cur.	Event	Actual	Forecast	Previous
AUD	AIG Manufacturing Index	46.5		47.3
JPY	Tankan Large Mfg	13	10	12
JPY	Tankan Non-Mfg	13	17	19
CNY	Manufacturing PMI (Sep)	51.1	51.0	51.1
AUD	Retail Sales (MoM) (Aug)	0.1%	0.4%	0.4%
IDR	Core Inflation (YoY) (Sep)	4.04%	4.33%	4.47%
EUR	Spanish Mfg. PMI (Sep)	52.6	52.2	52.8
CHF	SVME PMI (Sep)	50.4	52.0	52.9
EUR	Italian Mfg. PMI (Sep)	50.7	49.5	49.8
EUR	French Mfg. PMI	48.8	48.8	48.8
EUR	German Mfg. PMI (Sep)	49.9	50.3	50.3
EUR	Manufacturing PMI (Sep)	50.3	50.5	50.5
GBP	Manufacturing PMI (Sep)	51.6	52.5	52.2
USD	ADP Nonfarm		210K	204K
USD	ISM Manufacturing		57.5	58.1
USD	ISM Manufacturing PMI		58.5	59.0

Upcoming Economic Events that you should be monitoring:

Cur.	Event	Actual	Forecast	Previous
AUD	HIA New Home Sales			-5.7%
AUD	Building Approvals		1.0%	2.5%
AUD	Trade Balance		-0.700B	1.359B
GBP	Construction PMI		63.5	64.0
EUR	Interest Rate Decision		0.05%	0.05%
USD	Initial Jobless Claims		297K	293K
USD	Factory Orders (MoM)		-9.3%	10.5%