March copper was able to post an overnight upside breakout, but the market was unable to sustain that strength and prices have fallen back into negative territory this morning. Some traders feel that the copper market was undermined by forecasts overnight suggesting that longer-term copper supply and demand might come back into balance, while other traders feel that copper was simply undermined by weaker equities and adverse currency market action. Upbeat Chinese demand forecasts, favorable German Business sentiment readings and speculation that the Federal Reserve will provide a boost to physical commodity markets were widely thought to have supported copper prices today. However, favorable demand hopes might be tempered by this morning's Pending Home sales figures that are expected to be a little weaker.
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