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Copper: Cool Start to 2018

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Copper: Cool Start to 2018

U.S. markets were closed yesterday in honor of the Martin Luther King Day holiday, but that didn’t stop copper prices from bouncing around a bit. The red metal ended down a tick in international trading thanks to a reversal in the U.S. dollar.

Copper started out strong thanks to a weaker buck, but that trend reversed as the dollar strengthened during Asian trading hours, pushing copper prices down.

Prices are down almost three percent so far in 2018, but frequent tED contributor Andrew Hecht of Seeking Alpha remains positive on a bullish year. “2018 is shaping up to be an exciting year for the commodities markets,” states Hecht. “Copper’s ascent has stalled a bit at the beginning of 2018, but the base metal could be resting and building a head of steam for its next higher high in the coming weeks and months. For now, copper is watching other raw material market move higher. However, it may not be long before it once again joins in the bullish party as the trend of the metal that is the barometer for global growth remains firmly intact, and the price is well above its technical support level.”

Copper opened this morning at $3.19 a pound. The week prior, copper fell 0.23%.

Click on the chart for live, up to the minute pricing.

 

In Other News
While U.S. banks were closed yesterday, China’s central bank was busy lifting its official yuan midpoint to the highest level in more than over 1-1/2 years, to 6.4574 per dollar, its highest level in nearly two years.

According to a Reuters poll, China’s economic growth is expected to have slowed slightly in the fourth quarter from the previous quarter as the government extended a crackdown on debt risks and factory pollution.

The U.S. economic calendar is light during this holiday shortening week, with a report on the housing sector expected to draw the most attention.

China is slated to release what will be closely watched fourth-quarter growth data, while in Europe investors will await monthly inflation data to assess how fast the ECB could start unwinding its asset purchase program.

 

Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.

Monday, January 15
Financial markets in the U.S. were closed for the Martin Luther King Day holiday.

Tuesday, January 16
New Zealand is to release data on business confidence.
The UK is to release inflation data for December.
The U.S. is to publish data on manufacturing activity in the New York region.
Swiss National Bank Chairman Thomas Jordan is to speak at an event in Zurich.

Wednesday, January 17
The euro zone is to produce revised inflation data.
The U.S. is to report on industrial production.
The Bank of Canada to announce its benchmark interest rate and publish a rate statement which outlines economic conditions and the factors affecting the monetary policy decision.
Cleveland Fed President Loretta Mester is to speak at an event in New Jersey.

Thursday, January 18
Australia is to publish its latest jobs report.
China is to release a string of data including data on fourth quarter economic growth, industrial production and fixed asset investment.
The U.S. is also to publish a flurry of data, including reports on building permits, housing starts, jobless claims and manufacturing activity in the Philadelphia region.

Friday, January 19
New Zealand is to release a report on manufacturing activity.
The UK is to report on retail sales.
Canada is to publish data on manufacturing sales and foreign securities purchases.
The U.S. is to round up the week with preliminary data on consumer sentiment.

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Jim Williams

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