-1724062050.png)
Copper Recovery Continues
Copper prices continue to push higher at the start of the week, The metal is enjoying a mild recovery on the back of recent losses as USD weakness fuels fresh demand. Weaker US inflation and an uptick in Fed easing expectations have combined to weigh on USD currently which is helping keep copper prices supported here. Looking ahead this week, there is plenty of potential for USD to move lower in response to the July FOMC minutes and Fed chairman Powell’s comments at the Jackson Hole Symposium. If these two events are seen as dovish, USD looks vulnerable to a fresh push lower which should help drive the copper recovery higher near-term.
PMIs In Focus
However, there are some bearish risks for copper this week. The latest round of PMI data sets could prove tricky for copper bulls if manufacturing activity is seen taking another leg down, particularly in the US. Weak factory readings last month added to demand concerns in copper, weighing on the metal. While US recessionary fears have faded somewhat on the back of strong US retail sales last week, fresh downside in PMI readings this week could well put them back in focus.
Technical Views
Copper
The sell off in copper has stalled for now into a test of the 3.9350 support level. Price has bounced and is now testing the bear channel highs. With momentum studies bullish, a break higher here will put focus on a test of the 4.3000 level next. To the downside, if we break back below the .39350 level, 3.6720 will be the next support to watch.
.png)
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 75% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Futures and Options: Trading futures and options on margin carries a high degree of risk and may result in losses exceeding your initial investment. These products are not suitable for all investors. Ensure you fully understand the risks and take appropriate care to manage your risk.
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.