[brief comment on copper in SMM] Fed interest rate cut suggests an increase in copper prices at the 47000 level

SMM June 20 news: today's Shanghai copper main contract opened high in the morning at 46880 yuan / ton, after the opening of the decline, the center of gravity in the vicinity of 46830 yuan / ton shock finishing, during the period of exploration during the lowest level of 46790 yuan / ton. Subsequently, bulls entered the market actively, copper prices opened all the way high, and continued to maintain a high trend in the afternoon. After reaching the highest level of 46990 yuan / ton in the day, the end of the day fell slightly, and closed at 46930 yuan / ton, up 46990 yuan / ton, an increase of 0.21 per cent. Today, the main contract of Shanghai Copper increased its position by 936 hands to 245000 hands, while trading volume decreased by 104000 hands to 137000 hands. The Shanghai Copper 1909 and 1910 contracts added 7748 positions to 153000, the Shanghai Copper Index increased its positions by 2426 to 591000 today, and trading volume decreased by 166000 to 252000. Today, the US dollar was affected by the increase implied by the Federal Reserve's expectations of interest rate cuts in the second half of the year. The US index fell all the way, forming a positive support for copper prices. Copper prices rose as a whole today, closing at the physical pillar, the KDJ index continued to expand, the MACD index was lengthened, and the technology was supported by copper prices. However, at the macro level, the market is waiting for the G20 summit to be held, and the uncertainty of the economic and trade atmosphere makes the market still cautiously bullish on copper prices. In the evening, waiting for the guidance of the outside market, test whether Shanghai copper can continue to explore and stand at the level of 47000 yuan / ton.

(SMM Song Yao)