Key Macroeconomic Indicators for Base Metal Prices (2017-5-22)

SHANGHAI, May 22 (SMM) –Market attention will focus on Chicago Fed National Activity Index for April, as well as remarks by President of Philadelphia Federal Reserve and Minneapolis Federal Reserve today.  

Recent political scandal in the US hit the US dollar and reduced possibility of rate hike in June. But, optimistic remarks by US Fed officials earlier still supported rate hike in June. US Fed officials were divided recently over whether it was appropriate to lift interest rate in June. President of Philadelphia Federal Reserve and Minneapolis Federal Reserve will make speeches tonight, which should bear close attention. 

Market optimism over oil meeting to be held later this week allowed US crude oil futures prices for July delivery to return to USD 50/bbl. However, growing shale gas production in the US, rising oil output in Canada and Brazil, as well as small growth of oil output in the UK and Norway, will put pressure on oil prices. 

See SMM price forecast, please click: SMM Price Outlook for Base Metals on SHFE (May 22, 2017)