SHANGHAI, Nov.8 (SMM) – LME lead prices overnight opened at USD 2,159/mt in Asian trading hours. Later on, transactions were sluggish since cautious investors were closely watching the euro zone’s interest rate meeting and the release of the US’s Q3 GDP. LME lead prices thus fluctuated around USD 2,160/mt. In European trading session, the European Central Bank (ECB) delivered a surprise 25 basis-point rate cut, resulting in a near-200 points fall in euro against the US dollar. The euro extended losses after the US Q3 GDP released later recorded a 2.8% increase from a year earlier, far more than previous projections. In response, the US dollar rebounded dramatically to a high of 81.46 after pushing through 81, dragging down LME lead prices significantly. As a result, LME lead hovered between USD 2,133-2,148/mt after dropping below all moving averages and finally ended at USD 2,145/mt, down USD 15/mt. Traded volumes rose 905 lots to 4,746 lots, while open interest shed 92 lots to 125,000 lots.
LME lead prices will see limited losses on Friday as most investors are wary before the release of the US nonfarm payrolls despite a stronger US dollar from the ECB’ s rate cut. LME lead prices are expected to move between USD 2,130-2,160/mt, while the most active SHFE 1312 lead contract prices will fluctuate between RMB 14,250-14,310/mt on Friday. In China’s spot lead market, traded prices will be mostly in RMB 14,100-14,250/mt range and transactions will be relatively light prior to the weekend.