Metals Pack Fundamental Analysis October 6, 2014 Forecast – Silver & Copper

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Updated: Aug 24, 2015, 22:00 UTC

Analysis and Recommendations: Silver added 6 points to trade at 17.053 while Copper gained 5 points to trade at 3.004. Metals remain weak but made little

Metals Pack Fundamental Analysis October 6, 2014 Forecast – Silver & Copper

Metals Pack Fundamental Analysis October 7, 2014 Forecast – Silver & Copper

Analysis and Recommendations:

Silver added 6 points to trade at 17.053 while Copper gained 5 points to trade at 3.004. Metals remain weak but made little movement in today’s market as traders focus on the US nonfarm payroll report. China remains on holiday. Copper futures dropped below $3 a pound to the cheapest in more than five months as signs of deepening economic malaise in Europe dimmed demand prospects.

Base metals prices remained under pressure yesterday and fell by about 0.8% on average. In recent weeks, fears about China’s demand and a significant appreciation of the US dollar have weighed on metals prices.

Although copper edges slightly higher today (after hitting a five-month low yesterday), payrolls report for September which is going to be released in the afternoon may rather contribute to a downward pressure on the metal via its impact on US dollar.

European equities tumbled the most in 15 months on concerns that an asset-buying program announced today by European Central Bank President Mario Draghi won’t be enough to boost inflation and revive the economy. A report yesterday showed euro-area factories expanded at the slowest clip in more than a year.

Operations resumed at Freeport-McMoRan Inc. (FCX)’s Grasberg copper mine in Indonesia after open-pit work was suspended because of an accident on Sept. 27. Grasberg had still been shipping concentrate, or partly treated ore. Indonesia barred exports of unprocessed mineral ores in January.

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	HIA New Home Sales	3.3%		-5.7%
CNY	Non-Manufacturing PMI	54.0		54.4
EUR	Spanish Services PMI	55.8	57.1	58.1
EUR	Italian Services PMI	48.8	49.6	49.8
EUR	French Services PMI	48.4	49.4	49.4
EUR	German Services PMI	55.7	55.4	55.4
EUR	Services PMI (Sep)	52.4	52.8	52.8
GBP	Services PMI (Sep)	58.7	59.1	60.5
EUR	Retail Sales (MoM)	1.2%	0.1%	-0.4%
USD	Nonfarm Payrolls (Sep)		215K	142K
USD	Private Nonfarm		210K	134K
USD	Trade Balance (Aug)		-40.90B	-40.60B
USD	Unemployment Rate		6.1%	6.1%