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. See our updated Privacy Policy here.

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
Subscribe
Please try again
EUR/USD
Bearish
Oil - US Crude
Bullish
Wall Street
Bearish
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
Mixed
More View more
Real Time News
  • The non-farm payroll (NFP) figure is a key economic indicator for the United States economy. It is also referred to as the monthly market mover. Find out why it has been given this nickname here: https://t.co/yOUVEEqhc5 https://t.co/oPaSJLahbE
  • It’s important for traders to be familiar with FX spreads as they are the primary cost of trading currencies. Understand a pair's spread here: https://t.co/zEEUHZBx7g https://t.co/bFOK9RRXtv
  • Dealing with the fear of missing out – or FOMO – is a highly valuable skill for traders. Not only can FOMO have a negative emotional impact, it can cloud judgment and overshadow logic. Learn how you can control FOMO in your trading here: https://t.co/lgDf5cVYOn https://t.co/LIumDnHrTo
  • Rollover is the interest paid or earned for holding a currency spot position overnight. Learn how to earn rollover interest on your open positions here: https://t.co/SRsG8CxjEn https://t.co/ITdDUGoAL0
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZFxlk https://t.co/eF0XS79LgK
  • The continuity seen across these volatility cycles is a good thing. Historical precedence offer a blueprint for identifying conditions supportive for a vol-event to occur, and how they may unfold. Deepen your knowledge of historical volatility here: https://t.co/vg7w10la3j https://t.co/gaYbbaTnpb
  • Get your snapshot update of the of relative currency strength and exchange status from around the globe here: https://t.co/H19vRDCpUJ https://t.co/HCvzbjEkr6
  • Get our analysts’ view on the key fundamentals for indices in Q2. Download now. https://t.co/Etdyanp76f https://t.co/n2wxfyMsJt
  • The Spinning Top candlestick pattern forms part of the vast Japanese candlestick repertoire with its own distinct features. Gain a better understanding of the spinning top candlestick here: https://t.co/DWm7cBMUg9 https://t.co/5KaUvfGM4I
  • There’s a strong correlation between interest rates and forex trading. Forex is ruled by many variables, but the interest rate of the currency is the fundamental factor that prevails above them all. Learn how interest rates impact currency markets here: https://t.co/J0EPMD2Cfi https://t.co/9Bjkh5413e
Copper Price Forecast: Bulls Push Price to New Multi-Year High

Copper Price Forecast: Bulls Push Price to New Multi-Year High

Thomas Westwater, Analyst

Copper Prices, Economic Recovery, Chinese Imports – Talking Points

  • Copper bulls drive price to new multi-year high
  • Lackluster US Dollar helping to support prices
  • Market imbalances continue as China drives demand

Copper futures rose to a fresh multi-year high on Friday. The current COMEX futures price shows $3.1070 per pound, with the rally from its March lows just north of 57%. The performance in the red metal ranks among the best in the commodity space following the COVID-induced market volatility seen earlier this year.

Copper Futures vs US Dollar (Daily Price Chart)

Copper vs US Dollar Price Chart

Chart Created with TradingView

Due to its broad use throughout various industries, the price of copper correlates well with economic output. Thus, the rise in copper prices may serve as a bellwether for continued economic growth. On the other hand economic forecasts show the robust global recovery may slow. The OECD Interim Economic Outlook Assessment released this week states:

“After the initial bounce-back in many activities following the easing of confinement measures, there are some signs from high-frequency indicators and business surveys that the pace of the global recovery has lost momentum since June, particularly in many advanced economies.”

Nevertheless, other underlying market fundamentals revealed that market imbalances may be supporting copper prices. On the supply side, LME warehouse storage levels dropped to 73,425 tonnes earlier this month, the lowest in 13 years. Storage levels rebounded marginally this past week but remain near the 13-year low. Covid-induced restrictions affecting mining operations are likely to continue having an impact on the supply-side for copper, and will likely persists to a certain degree until countries can better control the ongoing pandemic.

Copper vs LME Copper Warehouse Storage

LME Copper storage vs copper futures

Furthermore, demand for copper is still elevated from some of the largest consumers of the commodity, like China. Robust industrial production data out of China hints at strong underlying demand even though copper imports have dropped off from the previous month. Also, analyzing copper price trends with Chinese imports reveals that China prefers to purchase copper when prices are weak. If this were to continue, there could be potential for the commodity to stay relatively afloat. Not to mention, with the supply side already strained, copper prices may show increased sensitivity to buy-side pressures.

Copper vs Chinese Copper Imports

Copper vs chinese copper imports

--Written by Thomas Westwater, Contributor for DailyFX.com

Contact and follow Thomas on Twitter @FxWestwater

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

DISCLOSURES