Copper yesterday traded with the positive node and settled 0.87% up at 424.9, re-approaching 4-month high as market sentiment was boosted by hopes that Greece may soon reach a consensus on a debt restructuring deal needed to avert a sovereign debt default.
Later in the day, Greek PM was to hold talks with the leaders of Greece's 3 political parties to discuss the terms of new austerity measures being demanded in return for a 2nd bailout, worth EUR130 billion.
EU officials have said a final agreement on Greece’s EUR130 billion bailout must be approved by Feb 15, in order to avert a default when a EUR14.5 billion bond repayment comes due on March 20.
Meanwhile, speculation that China planned to ease monetary policy to support economic growth provided further support after the PBoC introduced measures to help 1st-time home buyers. Copper traders were awaiting the release of key Chinese inflation figures, which was likely to show further signs of cooling.
Chinese consumer prices probably rose 4% in January, compared with a 4.1% gain in December. For today's session market is looking to take support at 421.7, a break below could see a test of 418.4 and where as resistance is now likely to be seen at 427.9, a move above could see prices testing 430.9.
Trading Ideas:
Copper trading range for the day is 418.5-430.9.
Copper gained as market sentiment was boosted by hopes that Greece may soon reach a consensus on a debt restructuring.
Speculation that China planned to ease monetary policy to support economic growth provided further support.
A further deceleration in inflation could open the door for additional cuts in the RRR by the People's Bank of China.
Courtesy: Kedia Commodities
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