Copper rose yesterday after recent correction. Equities moved up amid mixed economic cues. Traders also eyed a continued fall in LME Copper inventories which are currently placed around a 15 year low. Solid gains emerged in the US stocks after latest string of losses. Lack of economic cues did not matter as tech stocks rallied sharply. COMEX Copper fell near 3 per pound mark before witnessing a good pullback.
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 on Wednesday. Both, however, were higher by 2.5 percentage points from February.
Shanghai base metals traded lower for the most part on Thursday morning, while their counterparts on the LME copper slipped ahead of a monetary policy decision by the European Central Bank, and as heightened tensions between the United States and China kept investors cautious. However, LME copper stocks shrank continuously will support copper prices. U.S. companies in China are increasingly fretful that trade tensions between the world’s two biggest economies will drag out over years, a survey showed. Copper stocks on the LME dropped to the lowest since November 2005, while inventories in warehouses monitored by the Shanghai exchange rose to their highest since May.
TREND : WEAK BULLISH
Time : 10/09/2020
Pivot : 3.0092
Technical View : LONG ABOVE 3.0222
Target : 3.0352, 3.0615, 3.0852
Technical View : SHORT BELOW 2.9952
Target : 2.9812, 2.9585, 2.9312