We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
Oil - US Crude
Mixed
Wall Street
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Mixed
USD/JPY
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • López Obrador hopes #USMCA will help tighten trade relationships between the US and Mexico. Get your currencies market update from @HathornSabin here: https://t.co/bZrUKSCGaS https://t.co/MZ7UoiWWRj
  • The $AUD may suffer as relations between Australia and China deteriorate amid dwindling growth prospects. Euro traders will be closely watching progress in talks about a €500b recovery fund proposal. Get your market update from @ZabelinDimitri here: https://t.co/LkEFJViPWY https://t.co/sofO135ElG
  • The US Dollar could rise against #ASEAN currencies such as the Singapore Dollar as US-China tensions seem to escalate. The Indian Rupee is also looking ahead of local 1Q GDP data. Get your ASEAN currencies market update from @ddubrovskyFX here:https://t.co/LkEFJViPWY https://t.co/ZGFaQQ3Hr2
  • The #Euro is the big driver here for DXY as it is 57% of the index. It is rising now and trying to break above the March 27 high at 11147. Get your $EURUSD technical analysis from @PaulRobinsonFX here:https://t.co/6gt3F9LuGP https://t.co/73SaL5AeXD
  • U.S. Market Analyst at https://t.co/JsVsSmefgR, Shain Vernier covers - ✔️ Safe haven assets in volatile markets ✔️ Central banks and governments ✔️ How will commodities trade in a recession Only on Trading Global Markets Decoded #podcast. Tune in here: https://t.co/1UmEzEbwiy https://t.co/EIC9YqfTec
  • Anybody else think that casting directors in movies are some of the most underrated people when it comes to giving a film/series credit?
  • No https://t.co/EoBltaP17k
  • Crude #oilprices may face heightened liquidation pressure as the cycle-sensitive #commodity finds itself under the pressure of resilient resistance and a vulnerable, multi-week rising channel. Get your crude #oil market update from @ZabelinDimitri here: https://t.co/cGPX4qcOH1 https://t.co/0U4JMJVFuf
  • The @ecb will likely boost its Pandemic Emergency Purchase Program at Thursday’s meeting of its Governing Council; a move that could give the #Euro a lift. Get your currencies market update from @MartinSEssex here: https://t.co/I4PbmJNG1z https://t.co/hu6Ld1KdDB
  • $GBPUSD doesn’t have the cleanest set of technical indications, but #USD may give indications if it can break its trading range via the $DXY. Get your currencies market update from @PaulRobinsonFX here: https://t.co/PrC9wAaXvU https://t.co/vHYHflwqR3
Chinese Growth Momentum Slows Sending Copper Prices Lower

Chinese Growth Momentum Slows Sending Copper Prices Lower

2014-11-04 17:12:00
Walker England, Kara Dailey,
Share:
Chinese Growth Momentum Slows Sending Copper Prices Lower

Talking Points:

  • China accounts for 40% of copper demand
  • Chinese Manufacturing PMI, GDP Growth Rates, and Housing Prices experience multi-month declines
  • Demand for copper has dropped leaving prices looking for support at 2.90

Copper is the third largest industrial metal after iron ore and aluminum. It is both malleable and ductile with a high resistance to corrosion. Its ability to serve as a thermal and electrical conductor makes it a popular metal to use in wiring and telecommunications. As such building construction is the largest single market at 30% followed by electronics and transportation. Within these markets China accounts for the largest share of demand at 40%. Thus copper prices remain sensitive to changes in the Chinese housing and manufacturing industries.

After steadily rising from February to July, China’s manufacturing PMI has since retraced from a high of 51.7 to 50.8. Within the PMI index major declines occurred between July and October within the following categories: new export orders, purchasing volume, and raw materials purchase price. Declines in the overall PMI are reflected in China’s lower Q3 GDP growth rate (-0.2%). Also contributing to the slowdown in economic growth, was a slump in the real estate market.

Year to date new construction in the Chinese market is down 11% with newly built housing prices declining for a third straight month, registering -1.3% in September. Pre-existing property prices are also down with 67, out of 70 major Chinese cities experiencing a price drop in August. Over the last four months, with subdued growth in the manufacturing and construction industries, demand for copper and other industrial metals has lessened. As a result copper has continued its decline in a descending price channel with support at 2.90.

Daily Copper Chart

dailyfx copper chart.

Chart Created by Walker England Using MarketScope 2.0

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.