The copper market has put together a moderate recovery this morning, as many traders feel that overall macro economic conditions have marginally improved. However, Asian copper prices were weaker overnight and a major brokerage firm suggested that the near-term supply situation in copper might negatively impact prices. While some traders are relieved with the macro economic conditions that face the market this morning, there is general agreement that a dampening of Euro zone debt anxiety may not be enough to fully cushion the market against any negative impact from disappointing US economic data. In addition, several negative Chinese copper demand forecasts overnight could limit any positive price reaction to early strength in US equities, a weaker Dollar and the possibility of fresh easing measures from the Federal Reserve later this week.
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