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Copper Fighting to Rebound
Copper prices are fighting to get back above broken support today following a bounce off recent lows. Copper futures have been under heavy selling pressure over recent months amidst an uptick in USD strength linked to safe-haven demand around recession fears. USD has been pushing higher leading to a fresh downturn in copper prices from the recent April highs. More recently, USD has seen fresh support kicking in linked to a shift in the market’s expectations around the projected Fed rate path. The Fed is now widely expected to hike interest rates again next month while expectations of rate cuts later in the year have been scaled back. Against this backdrop, copper prices have struggled tremendously.
Copper Inventories & US Jobs Data On Watch
However, with copper prices bouncing off the lows last week on hopes of a forthcoming US debt ceiling deal, the near-term outlook has improved. If a deal is done, avoiding a default, and risk assets rally, copper prices should be able to gain further ground during the recovery. Looking ahead this week, the next round of US labour reports will be on watch on Friday. We also have the latest LME copper inventories release due tomorrow which should give an insight into the health of copper demand currently.
Technical Views
Copper
Copper prices are currently fighting to get back above the broken bull channel lows and the broken 3.6745 structural support. This is a key pivot for the market and failure to reclaim this zone leaves price vulnerable to a further push down to the 3.3445 level. To the topside, 3.9410 is the next level to focus on.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.