LME Copper to Swing Widely Next Week, SMM Says

SHANGHAI, Jul. 30 (SMM) – LME and SHFE copper will both trade in a wide band next week as positive and negative factors intertwine, SMM says. 

The Bank of Japan (BOJ) expects the country’s CPI to rise 1.7% in the fiscal year of 2017. The BOJ will have to maintain QE so as to ensure accomplishment of CPI target. 

Member of the Bank of England (BOE) said the UK is in no rush to cut interest rate and that a balance must be made between possible decline in inflation and GDP. Big uncertainty over monetary policy in the UK will trigger volatility in foreign exchange market. 

There is a good chance for the US Fed to raise interest rate in December. The US dollar index will move between 96-97. 

Growing concerns over crude oil oversupply and negative technical side will send crude oil prices down.

LME copper should move between $4,800-4,950 per tonne, and SHFE 1609 copper will fluctuate between 37,250-38,000 yuan per tonne.

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