SMM Morning Review - 2010/12/15 Copper Market

SHANGHAI, Dec. 15 (SMM) – The US Federal Reserve decided to leave its existing interest rate unchanged according to its policy statement on December 14th. LME copper prices fell due to market caution before the Fed’s meeting results, down as low as USD 9,166/mt, but rallied to finish at USD 9,240/mt, flat with Monday’s closing level, and hitting a new record high of USD 9,268/mt during the session. Trading volumes continued to drop, down 1,650 lots, and positions reversed its previously rising trend, down by 2,180 lots, reflecting market caution at high levels. The US dollar index fell below 79, but found support at the 30-day moving average, with signs of rebounds, also weighing down base metal prices yesterday.

During Wednesday’s trading hours, the US dollar is expected to move between 79.2-79.8, and will find support at the 30-day moving averages, and so LME copper prices will fluctuate in the USD 9,140-9,270/mt range, and SHFE three-month copper contract prices will move between RMB 68,000-69,500/mt on Wednesday.

Copyright © SMM. All Rights Reserved

None of this material may be used for any commercial or public use in any forms or means, without the prior written consent of SMM. For reproduction issue, please contact us by email: service.en@smm.cn