Copper extended gains amid supportive economic cues. Traders focused on the strong momentum as the metal broke above the recent 27 month high and approached $3.10 per pound – highest in around two and half years now. The US Conference Board showed a continued increase by its reading on leading US economic indicators in the month of August. The Conference Board said its leading economic index rose by 1.2% in August after surging up by 2% in July and surging by 3.1% in June. The University of Michigan released a report on Friday showing consumer sentiment continued to improve in the month of September. The preliminary report said the consumer sentiment index climbed to 78.9 in September from 74.1 in August.
Shanghai base metals were mostly higher on Monday morning, while their counterparts on the LME set for a mixed start, as China kept its loan prime rates unchanged. China’s one-year and five-year Loan Prime Rate (LPR) on Monday were kept unchanged at 3.85% and 4.65%, respectively. The US Federal Reserve vowed last week to keep interest rates near zero to support the coronavirus-hit economy, and the Japanese and British central banks also decides to keep ample liquidity. However U.S.-China tensions will likely have an impact on metals markets going forward and could flare up even more after the U.S election as both candidates have said they want to limit China’s influence in the world.
TREND : SIDEWAYS
Time : 21/09/2020
Pivot : 3.0965
Technical View : LONG ABOVE 3.1047
Target : 3.1129, 3.1227, 3.1364
Technical View : SHORT BELOW 3.0909
Target : 3.0854, 3.0727, 3.0619