SHANGHAI, Feb. 11 (SMM) -- On Wednesday, LME nickel prices opened at USD 17,640/mt and closed at USD 17,890/mt, with the highest level at USD 18,180/mt and the lowest level at USD 17,525/mt. Daily trading volumes were 2,666 lots and positions were 91,433 lots.
Bernanke stated at House Financial Services Committee hearing yesterday, interest rate will remain at low levels for a long period given the high unemployment rate, controlled inflation and expectation of stabilized inflation, but Federal Reserve will raise interest rates and reduce excessive reserves at a particular time. Federal Reserve may even raise federal discount rate in the near future, and target Required Reserve Rate as the major tool to tighten liquid. US dollar index declined after climbing above 80.31 yesterday and currently fell below 80. Concerns over debt crisis in Greece gradually eased as other countries on Euro zone launched aid programs, and negative impact of this crisis will gradually wane. Although Bernanke's speech indicated expectation of interest rate increases, but it was too early to implement it. US dollar may hardly strengthen stably before the release of positive employment figures. According to data released yesterday from China Customs, China's imports data in January 2010 were on upward track MoM due to low level in 2009 affected by financial crisis, but down 15-20% YoY, triggering concerns from investors over demand in China.
SMM still believes that US dollar index will meet resistant at 80, and LME nickel prices will continue to be on upward track, with prices expected to move in the USD 17,700-18,200/mt range today.
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