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Copper To Focus On Economic Cues

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Copper fell in tune with US equities in last session. Economic cues were positive though. Global trade volume is likely to fall less than earlier estimated this year while the expected rebound next year will not return it to pre-crisis levels, the World Trade Organization said Tuesday, as it warned of downside risks from a resurgence of coronavirus infections over the coming months. The volume of world merchandise trade is set to decline 9.2% this year, which is much less than the 12.9% slump predicted in an optimistic scenario in April. COMEX Copper fell 1% to $2.93 per pound.

Germany’s factory orders climbed 4.5% month-on-month, which was faster than the 3.3% rise in July, data from Destatis revealed Tuesday. Domestic orders climbed 1.7%, while foreign demand logged a notable growth of 6.5%. New orders from the euro area went up 14.6% and that from other countries increased by 1.5%. On a yearly basis, manufacturing orders dropped at a slower pace of 2.2%, following a 6.9% decrease in July.

Chinese markets will be closed Oct. 1-8 for the Golden Week holiday. Copper prices fell on Wednesday after U.S. President Donald Trump halted negotiations with the U.S. Congress on a large coronavirus stimulus bill. The discount on LME cash copper against the three-month contract stretched to $14.25 a tonne, its biggest since June 22, indicating healthy nearby supplies. LME copper inventories have doubled over the past two weeks. A workers union at the Candelaria copper mine in Chile rejected a contract offer from Canada’s Lundin Mining, union officials said on Monday, raising the possibility of a strike.

TREND : WEAK BEARISH

Time                                      :           07/10/2020

Pivot                                     :           2.9338

Technical View                     :           LONG ABOVE 2.9477

Target                                   :           2.9616, 2.9904, 3.0143

Technical View                      :           SHORT BELOW 2.9193

Target                                   :           2.9049, 2.8821, 2.8522

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