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MTECHTIPS:- Copper futures slump to fresh 3-week low on stronger dollar
MTECHTIPS:- Copper futures slump to fresh 3-week low on stronger dollar
Copper prices fell to the lowest level in nearly three weeks on Wednesday, as a broadly stronger U.S. dollar dampened the appeal of the red metal. On the Comex division of the New York Mercantile Exchange, copper for July delivery hit an intraday low of $2.823 a pound, the weakest level since April 30, before paring losses to trade at $2.828 during European morning hours , down 1.0 cent, or 0.35%. A day earlier, copper tumbled 6.9 cents, or 2.37%, to close at $2.837. Futures were likely to find support at $2.788, the low from April 30, and resistance at $2.913, the high from May 19. The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.3% to hit 95.67 early on Wednesday. A stronger dollar reduces demand for raw materials as an alternative investment and makes dollar-priced commodities more expensive for holders of other currencies. The greenback was boosted after data on Tuesday showed that U.S. housing starts in April rose to the highest level in nearly seven-and-a-half years, while building permits also jumped. The upbeat data boosted hopes for a rebound in second quarter economic growth after a sharp slowdown in the first three months of the year. Market players looked ahead to the minutes of the Federal Reserve’s April meeting, due for release later Wednesday, as well as a speech by Fed Chair Janet Yellen on Friday, for fresh indications on the timing of an initial rate hike.
