Copper stayed choppy yesterday and fell sharply today. DOW eased from its intraday highs as buying was limited despite Fed’s assurance of keeping rates lower for an extended period. COMEX Copper eased slightly as well after prices failed to hold on around one week high. COMEX Copper currently trades at $3.01 per pound, down 1.70% on the day.
Data out this week showed that the US Federal Reserve said industrial production climbed by 0.4% in August after rising by an upwardly revised 3.5% in July. Chinese economic data was also good. Copper was largely unmoved after the US Federal Reserve kept interest rates near zero and promised to keep rates there until inflation rises consistently.
Copper prices rose on Wednesday on optimism over progress in U.S.-China trade talks and signs that researchers might be closer to a treatment for the coronavirus. British drugmaker AstraZeneca has begun trials of its antibody-based drug for the treatment and prevention of COVID-19, the latest development in a global race to combat the pandemic. US industrial production for August missed expectations, suggesting a slow recovery in industry production, which deepened market concerns. The US dollar index returned above 93 as the New York Fed’s Empire State business conditions index rose 13.3 points to 17 in September, far higher than expectations, which weighed on copper futures. A tailwind for zinc demand from booming Chinese steel production has pushed prices of the galvanising metal to their highest in more than nine months, yet data such as warehouse stock levels suggest further significant gains are unlikely.
TREND : WEAK BEARISH
Time : 17/09/2020
Pivot : 3.0241
Technical View : LONG ABOVE 3.0393
Target : 3.0545, 3.0971, 3.1227
Technical View : SHORT BELOW 3.0032
Target : 2.9823, 2.9577, 2.9141