SHANGHAI, Jan. 28 (SMM) -- The US Federal Reserve yesterday announced to keep the low interest rate unchanged, but during the voting process, the voice of opposing the low rate was heard, which increased investor expectation of higher interest rate. The US dollar soared, helping the US dollar index to climb from 78.4 to 78.7. The US's new home sales in December fell 7.6% from a month earlier, to an annualized rate of 342,000, down from the expected growth of 2.8% to 370,000. The lower-than-expected data further sent the stock and base metals markets lower. LME copper prices continued its corrections, with prices ending at USD 7,230/mt, down USD 165/mt. LME copper prices had lost its support at the 60-day moving average.
SMM believes copper prices will likely rebound after this round of large price corrections.
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