London copper hovers near three-month top as dollar drops
London (June 28) Copper edged to a near three-month high on Wednesday, supported by a weaker dollar and tighter supply.
The euro hit a one-year high on Wednesday, staying firm after comments by European Central Bank President Mario Draghi the previous day were seen as opening the door to tweaks in the central bank's aggressive monetary stimulus. On the supply side, signs have emerged that supply is shrinking, as exchange inventories fall, and as nearby prices for copper priced in euros have rallied against forward prices, said Kingdom Futures in a report.
"It still feels if copper will stay in its $5,500/$6,000 range for a while longer, but with forward demand building and a tightness in concentrates it looks as if the upper side of the range could be challenged in the later stages of Q3."
* LME COPPER: London Metal Exchange copper traded flat at $5,858.50 a tonne by 0750 GMT, following 1.1 percent gains in the previous session when prices struck a 2-1/2 month top at $5,868.
* CHARTS: Tuesday's top also matched the weekly 200 moving-day-average which has been a key resistance since late last year. A break of this level is likely to trigger more buying from investors who follow chart patterns, with copper targeting $6,000 again, a trader said. Equally, a failure to break this level could trigger long liquidation.
* SHFE COPPER: Shanghai Futures Exchange copper traded up 0.8 percent at 46,920 yuan ($6,902) a tonne.
* SHFE ZINC: Shanghai zinc premiums have eased $5 this week to $195 a tonne, reflecting easing in physical demand . Premiums surged on June 6 to $200, the highest since late 2013.
* CHINA ECONOMY: China's economy continued to improve in the second quarter, with corporate profits rising and hiring up, a private survey showed, but it suggested the Asian giant may have to brace for tougher times ahead. * USD: The U.S. dollar hit a more than nine-month low against the euro on Tuesday after the head of the European Central Bank opened the door to steps that might begin to reduce the central bank's emergency stimulus to the economy. * CHINA POLLUTION: China on Tuesday appointed a new environment minister who has promised a "protracted battle" to clean up the nation's notoriously polluted air, water and soil. * MARKETS: Asian shares slumped on Wednesday after Wall Street was knocked hard in the wake of a delay to a U.S. healthcare reform vote, while the euro rallied after European Central Bank President Mario Draghi hinted that the ECB could trim its stimulus this year. * COMING UP: U.S. Pending homes sales for May at 1400 GMT
Surce: Reuters
