Copper saw a modest correction last week with COMEX futures sliding under $3 per pound to test one week low as equities slipped. However, the metal moved up as traders eyed a continued fall in LME Copper inventories which are currently placed around a 15 year low.
On the economic front, the unemployment rate in world’s biggest economies eased in July but remains higher than levels before the Covid-19 pandemic, according to the Organisation for Economic Co-operation and Development (OECD). The unemployment rate in the group’s 37 member countries fell to 7.7% in July from 8% in June, the Paris-based organisation said in a report. Both, however, were higher by 2.5 percentage points from February.
Shanghai base metals were mostly higher on Monday morning, while their counterparts on the LME set for a mixed start, as investors await the US Federal Reserve’s policy meeting on September 15-16. China’s financial data including newly-added social financing and new yuan-denominated loans issued by the central bank last Friday topped market expectations. Continuous ample liquidity provided traction to economic recovery, keeping copper prices at high levels. However, escalating US-China and China-India tensions deepened concerns among investors, which pressure copper prices. Copper prices are likely to fluctuate in rangebound in the short term.
TREND : SIDEWAYS
Time : 14/09/2020
Pivot : 3.0408
Technical View : LONG ABOVE 3.0509
Target : 3.0611, 3.0759, 3.0945
Technical View : SHORT BELOW 3.0321
Target : 3.0235, 3.0059, 2.9901