Zinc yesterday traded with the positive node and settled 1.78% up at 106 as support seen from the major Greek political parties reached an agreement to cut spending and salary, causing market concerns to ease, so the euro against the US dollar rose to a two-month high.
Besides, the number of first jobless claims for last week was fewer than expected, so the US dollar against most currencies weakened. As a result, LME Zinc prices rose and finally closed at USD 2,153/mt, up USD 33/mt or 1.56%.
Hit by higher-than-expected CPI from China, LME prices slumped but later pared losses and fluctuated higher.
Greek Premier Papademos announced that Greek leaders accepted all provisions for the bailout plan, excluding only one provision. Market widely expects that the Greek government will soon reach agreement with private sectors on all provisions.
The Greek debt crisis which haunted market for quite a long time finally shed a light, boosting risk appetite in the market. In addition, rebound in China’s stock market also supported base metal prices.
For today's session market is looking to take support at 104.5, a break below could see a test of 103.1 and where as resistance is now likely to be seen at 106.8, a move above could see prices testing 107.7.
Trading Ideas:
Zinc trading range for the day is 103.07-107.67.
Zinc gained as support seen from the major Greek political parties reached an agreement to cut spending and salary
Greek political parties reached an agreement to cut spending and salary, causing market concerns to ease
Zinc daily stocks at Shanghai exchange came up by 731 tonnes
Courtesy: Kedia Commodities
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