Copper Prices Expected to Rise Amid Economic Data and Currency Market Influence

Strategic Insights -

Copper prices are anticipated to increase by 6 cents a pound due to the weakening US dollar, improvements in China's manufacturing data, and speculative short covering, according to analysts. This comes as London copper prices have reached an eight-month high. In addition, the euro has strengthened against the US dollar, which could impact metals markets in the short term. Economic data releases in the US, including April personal income and spending, construction spending, and the manufacturing index, will provide further insights into the economy's performance.

Key Takeaways:

  • The US dollar's weakness is expected to contribute to a rise in copper prices, with July copper futures trading 6 cents a pound higher.
  • China's manufacturing data improvements and speculative short covering are also factors driving the increase in copper prices.
  • The euro's strength against the US dollar may have a short-term impact on metals markets.
  • The June S&P 500 futures are up 11.70 points to 929.80 in screen trading ahead of the pit open.
  • July crude oil is up $1.41 to $67.72 a barrel in overnight activity.
  • Copper inventories in London Metal Exchange warehouses fell 300 metric tons, leaving them at 311,975 metric tons.
  • Comex inventory data shows a 18 short tons decrease at 55,664 short tons.
  • Key economic data releases include April personal income and spending, construction spending, and the May manufacturing index.

Statistics:

  • July copper futures are expected to open around 6 cents a pound higher.
  • Copper prices in London have reached an eight-month high.
  • The euro has strengthened against the US dollar to $1.4192 from $1.4160.
  • The June S&P 500 futures are up 11.70 points to 929.80.
  • July crude oil is up $1.41 to $67.72 a barrel.
  • Copper inventories in London Metal Exchange warehouses fell 300 metric tons.
  • Comex inventory data shows a 18 short tons decrease.

Sources:

  • Dow Jones Commodities News via Comtex (Jun 01, 2009)
  • Dow Jones Newswires (Jun 01, 2009)
  • Comtex (Jun 01, 2009)
  • New York Mercantile Exchange (Jun 01, 2009)
  • London Metal Exchange (Jun 01, 2009)
  • Institute for Supply Management (Jun 01, 2009)