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28 Jan 2015
Copper treads waters ahead of Fed decision
FXStreet (Mumbai) - Copper prices rebounded today, although remained close five and a half year lows as traders eagerly await outcome of the Federal Reserve's policy meeting later in the day for the timing of interest rare lift-off.
The red metal trades at USD 2.476/ pound, up 0.54% on the day, inching towards fresh 5-1/2 lows. Copper remains cautious ahead of the FOMC statement this evening, which is likely to be closely watched to see if the Fed are becoming even more dovish. Industrial metals prices are expected to remain undermined by weak global economic recovery and slowing demand from world’s top metals consumer, China.
Moreover, rising inventory levels at the warehouses indicated physical demand for the metal waning. Copper stocks in LME warehouses rose by 6450 tonnes on Tuesday, up by a third since the start of the year. In Shanghai, copper inventories are up 27 percent to more than 130,000 tonnes.
Copper Technical Levels
Copper prices have an immediate resistance located at 2.50, above which gains could be extended to 2.52 levels. Meanwhile, support is seen at 2.45 levels, below which it can extend losses to 2.42 levels.
The red metal trades at USD 2.476/ pound, up 0.54% on the day, inching towards fresh 5-1/2 lows. Copper remains cautious ahead of the FOMC statement this evening, which is likely to be closely watched to see if the Fed are becoming even more dovish. Industrial metals prices are expected to remain undermined by weak global economic recovery and slowing demand from world’s top metals consumer, China.
Moreover, rising inventory levels at the warehouses indicated physical demand for the metal waning. Copper stocks in LME warehouses rose by 6450 tonnes on Tuesday, up by a third since the start of the year. In Shanghai, copper inventories are up 27 percent to more than 130,000 tonnes.
Copper Technical Levels
Copper prices have an immediate resistance located at 2.50, above which gains could be extended to 2.52 levels. Meanwhile, support is seen at 2.45 levels, below which it can extend losses to 2.42 levels.