SMM Morning Review - 2010/5/10 Copper Market

SHANGHAI, May 10 (SMM) -- The approval of financial aid plan for Greece by Germany helped the euro rebound versus the US dollar, and the US dollar index fell below 84 in response. In this context, LME copper prices narrowed its losses, reaching as high as USD 7,000/mt during the session last Friday, and with prices finally closing at USD 6,915/mt, up 35/mt.

LME copper prices have stabilized steadily, and whether or not LME copper prices will move higher depends on the US dollar index trend. SMM believes the US dollar index will not drop sharply, given the persistent debt crisis in the Europe. Hence, LME copper prices will fluctuate around USD 7,000/mt in the short run. 

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