Copper Fundamental Forecast – July 22, 2016
Copper gained 2 points to trade at 2.256 edging up to its highest level as US housing data printed stronger than expected. Copper is a major commodity used in home construction. Copper rose towards $5000 a tonne on Thursday, finding some support as the dollar eased from a four-month high, and after China’s copper imports remained solid in June.
The dollar eased back from a four-month high against the euro ahead of a European Central Bank policy meeting later in the day.
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Price gains across metals this year, ranging from a 6-percent rise in copper to a 40-percent surge in zinc, have been bolstered by a recovery in oil prices and a shallower rate rise path in the United States following the Brexit, said analyst Lachlan Shaw of UBS in Melbourne. However, gains may prove short-lived, he added.
“We can see this holding up the prices. But as for the demand outlook, we think it will sequentially weaken in the second half.”
Oil prices, up by nearly a quarter this year, have lifted production and transport costs for miners, while a softer dollar raises the purchasing power for buyers of commodities paying with other currencies…
China’s refined copper imports for June rose by 19.7 percent on the year to 305,304 tonnes, while refined copper exports also jumped by 192.4 percent to 42,596 tonnes, customs data showed.
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Upcoming Economic Events that you should be monitoring:
Friday, July 22, 2016
Major Market Events | |||
Country | Name | Volatility | Previous |
JPY | All Industry Activity Index (MoM) | 2 | 1.3 |
EUR | Markit PMI Composite | 2 | 54.4 |
EUR | Markit Manufacturing PMI | 2 | 54.5 |
EUR | Markit Services PMI | 2 | 53.7 |
EUR | Markit Services PMI | 2 | 52.8 |
EUR | Markit Manufacturing PMI | 2 | 52.8 |
EUR | Markit PMI Composite | 2 | 53.1 |
CAD | Retail Sales (MoM) | 2 | 0.9 |
CAD | Consumer Price Index (MoM) | 2 | 0.4 |
CAD | Consumer Price Index Core (MoM) | 2 | 0.3 |
CAD | Consumer Price Index Core (YoY) | 3 | 2.1 |
CAD | Consumer Price Index – Core (MoM) | 2 | 0.4 |
CAD | Consumer Price Index (YoY) | 3 | 1.5 |
USD | Markit Manufacturing PMI | 2 | 51.3 |
USD | Baker Hughes US Oil Rig Count | 2 |
Government Bond Auctions
Date/Time Country Type
Jul 25 11:30 Germany Eur 1.5bn Jul 2017 Bubill
Jul 25 17:20 Italy Announces details of bond auction
Jul 26 11:10 Italy Holds zero-coupon/BTP€i auction
Jul 27 11:30 Germany Eur 1bn 2.5% Aug 2046 Bund
Jul 28 11:10 Italy Holds bond auction