Copper ended with slight gains recovering from losses supported by a weaker dollar and expectations that recent financial data could spur growth-supporting measures that would boost global metals demand. German Chancellor Angela Merkel expressed support for the European Central Bank (ECB) to fight the European debt crisis. Merkel said ECB President Mario Draghi's vow to do everything to preserve the euro zone is in line with what European leaders have been saying. Her comments helped the euro rebound strongly and drive commodity markets rallying from earlier lows. Expectations for economic stimulus in China grew after Premier Wen Jiabao said the country, the world's top consumer of refined copper, still faced headwinds despite cooling inflation. Those expectations got another boost after China's Commerce Ministry said foreign direct investment had fallen for January-July versus a year earlier and that the trade outlook for 2012 was worsening. Sluggish U.S. growth in the second quarter, undermined by the euro zone crisis, has also raised hopes the U.S. Federal Reserve will take further quantitative easing (QE) steps. Sluggish U.S. growth in the second quarter, undermined by the euro zone crisis, has also raised hopes the U.S. Federal Reserve will take further quantitative easing (QE) steps. In yesterday's trading session copper has touched the low of 413.05 after opening at 415, and finally settled at 414.95. For today's session market is looking to take support at 413.4, a break below could see a test of 411.9 and where as resistance is now likely to be seen at 416.1, a move above could see prices testing 417.2.
Trading Ideas:
Copper trading range for the day is 411.9-417.3.
Copper ended with slight gains recovering from losses supported by a weaker dollar
Expectations for stimulus in China grew after Premier Jiabao said country still faced headwinds despite cooling inflation
German Merkel’s comments helped euro rebound strongly and drive commodity markets rallying from lows.
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