LME Lead to Face Pressure from Rising Dollar (2016-5-19)

SHANGHAI, May 19 (SMM) – LME lead will face pressure from US dollar and will range USD 1,690-1,710/mt during Asian trading hours Thursday.

US initial jobless claims should be below prior week’s level in the week ending May 14, a reflection of continuous improvement in US economy. This fuels expectation for rate hike in June, supporting dollar.

SHFE 1607 lead will move between RMB 12,700-12,850/mt on May 19. In China’s spot market, cargo holders report troubles in sales while downstream purchase is weak, leaving trading tepid. Spot lead should trade at RMB 12,750-12,850/mt today with weakening of SHFE lead. 

Key Macroeconomic Indicators for Base Metal Prices (2016-5-19)