Like the rest of the metals complex, copper is showing some minor weakness relative to this week's highs. However, the copper market appears to be capable of holding a large portion of the recent pulse up in prices. Clearly the markets have anticipated some added assistance from central banks today and therefore the focus of the copper trade today might be the magnitude of the actions taken today by the ECB and the BOE. With somewhat weaker Asian copper price action overnight, it didn't seem like ongoing PBOC easing hopes provided copper with much of a lift overnight. The decision of the British Parliament today, on the level of investigation into the Libor fixing actions might be something that counters some of the anticipated easing news today. It is also possible that US scheduled data today will influence copper prices today as many markets like copper have recently started to factor in the prospect of US easing action. However, most markets have given the prospect of US easing only minimal consideration so far. A bigger question for the copper trade is what factor was actually driving prices in the recent 30 cent a pound run up, as some traders think the rally was primarily the result of technical short covering, while others think the run up was inspired by a short squeeze. However, it does appear as if copper saw a rally of roughly 10 cents a pound off the recent revival of central bank easing hopes and that could present a challenge to the bull camp after the easing news is seen later today. LME copper stocks overnight were down 800 tons to stand at 252,725 tons.
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