News & Analysis at your fingertips.

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.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bearish
Oil - US Crude
Mixed
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
Wall Street
Mixed
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
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.38%, while traders in EUR/GBP are at opposite extremes with 65.20%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/WGk95Bnjx5
  • Commodities Update: As of 16:00, these are your best and worst performers based on the London trading schedule: Gold: -0.45% Oil - US Crude: -0.63% Silver: -1.11% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/RvLy6xA9Is
  • Forex Update: As of 16:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: -0.06% 🇯🇵JPY: -0.15% 🇬🇧GBP: -0.22% 🇨🇦CAD: -0.32% 🇦🇺AUD: -0.38% 🇪🇺EUR: -0.43% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/MZIiNOFxXu
  • Hey traders! Wrap up your week with a market update from @DailyFX Chief Strategist @JohnKicklighter 👇 https://t.co/DHufbBKbDu
  • Canadian PM Trudeau says Canada purchasing 20 million vaccine doses from Astrazeneca -BBG
  • Indices Update: As of 16:00, these are your best and worst performers based on the London trading schedule: US 500: 0.26% France 40: 0.03% Wall Street: 0.02% FTSE 100: -0.06% Germany 30: -0.06% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/jByk8LUAt6
  • UK Government Official says either outcome is possible on Brexit
  • UK Government Official says if gaps in fisheries and level playing field are bridged, the EU's more constructive attitude will need to be translated into more realistic positions in the days to come
  • Big headline that says the EU has informed the UK that it must commit to some key demands in next week's trade talks if there is progress before the October deadlines. That said, I don't think this is a particularly new refrain between those two. It's the clock that matters
  • RT @Tams707: #USDZAR tests trendline resistance. Potential breakout in play? https://www.dailyfx.com/forex/market_alert/2020/09/25/South-African-Rand-Price-Forecast-USDZAR-Breakout-Potential-Brewing-LiveEdu-TDC.html
News of China’s PMI and Rate Cut Fade as Copper Trades Lower

News of China’s PMI and Rate Cut Fade as Copper Trades Lower

2015-03-03 17:31:00
Rob Pasche, Kara Dailey,
Share:

Talking Points:

  • Copper retreats on Tuesday, after reaching a 7 week high
  • China’s PMI increased to 50.7 on Monday, following the PBOC’s 25 bps rate cut on Saturday
  • Copper continues to trade below potential resistance levels

After reaching a 7 week high on Saturday, the price of copper has since retreated, falling 5.2 US cents. While favorable PMI readings and increasingly aggressive measures taken by the People’s Bank of China have elevated prices, a stronger US dollar and overarching concerns of China’s long-term growth prospects have given copper reason to pause. The hesitation is reflected in the price of copper futures.

A shift within the PBOC resulted in a 25 bps rate cut on Saturday. The drastic action is the third measure taken by the bank to increase liquidity and intensify economic activity; the financial institution previously cut rates in November and lowered the reserve-requirement ratio among lending institutions last month. When assessing the strength of the global economy, the central bank’s initiative elevated demand prospects, momentarily providing copper with support.

Copper was further elevated on Monday following the release of HSBC’s final manufacturing PMI data. After a flash reading of 50.1 last week, the index improved to 50.7 based on a stronger than expected expansion in the output and new orders sub-components. However, while production benefited from and upsurge in business volumes, analysts warn that export demand decreased for the first time in 10 months and the employment index weakened, albeit at a slower rate.

Perhaps upon reflection the news was viewed from a different perspective, sending copper lower. The rapidity with which policy was adjusted has led analysts to believe that additional easing measures will ensue. As a result, growth rate concerns remain steadfast for the world’s larger consumer of copper. Furthermore, the US dollar index strengthened following Saturday’s news, making copper a less attractive investment.

This bearish stance is reflected in the price of copper as quoted on the COMEX division of the NYMEX; the red metal is down 4.2 US cents for delivery in May. Prices are also down for deliveries in June, July and August. The next event likely to influence the price of Copper –China’s services PMI, set to be released by HSBC on Wednesday.

Copper Weekly Chart

News of China’s PMI and Rate Cut Fade as Copper Trades Lower

Chart Created by Rob Pasche Using MarketScope2.0

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

DISCLOSURES