Copper Prices to Embrace for Bright 2016 Next Week

SHANGHAI, Jan. 1 (SMM) – Copper prices, both on the LME and SHFE, will embrace a bright 2016 next year, SMM expects.

Market attention will focus on US December ADP and non-farm data, speeches by three hawkish US Fed officials, as well as minutes of the US Fed’s December policy meeting. The US dollar index should move more wildly between 97.8-98.8. Crude oil prices will remain weak. LME copper should rise to $4,650-4,800 per tonne. 

China will maintain proactive fiscal policy in 2016. Market liquidity will be ample at the beginning of the new year. SHFE copper has found solid support at the 5-day and 10-day moving averages, and is on track to move up to 35,500-37,000 yuan per tonne. 

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