Copper lost 1.4%, diving during the session below the $6,000 support yesterday and recovering $80 during the afternoon. Rising USD and doubts over the effects on global trading due to the US tariffs policy and trade war between the US and China, Nafta and the EU weighted on the metal. Current support could be seen at the psychological level $6,000 and the 50% Fibonacci retracement could be seen at $5,825 level. Cash to 3 moths carry was valued at $25.5 contango. Nickel dropped 1.73%, trading in the current $13,000-13,600 area. Full spread finished at $92 contango. Aluminium faced the $2,000 support, losing 1.18% and trading at the lowest level since early April. Below the $2,000 support , $1915 can be seen as a Fibonacci retracement support. Cash to 3 months carry finished at $41 backwardation. Zinc dropped 1.04%, trading towards the $2,500 support at 50% Fibonacci retracement. Full spread was valued at $46 backwardation from $30 the day before. Lead lost 2.35% or $50 yesterday, testing the $2,120 support. Full spread finished at $19.25 contango. Tin remained steady, losing just $40 and being in the range $19,000-20,000 with full spread at $95 backwardation.
Gold took a dive again towards the $1,200 level, and dropped 0.8% to the lowest of the last 12 months, $1,211 yesterday. Technically speaking $1,200 can be seen as a major support as it worked as this during 2017, even though the 61.8% Fibonacci retracement was set at $1,215 and it was broken yesterday. USD rising against a basket of major currencies and the already set expectations of 2 more interest rate hikes from the US Fed, pressured the safe haven assets group. Silver finished at $15.25, below the resistance point $15.50.
Platinum found support at $800. Palladium lost almost 5%, dropping once broke through the support $900, and experienced a sell-off towards the $795 50% Fibonacci retracement.
Oil prices rose again yesterday $1 with WTI futures trading at $69.70 on the August contract, and Brent just 0.3% finishing at $72.87 on the September.
EUR dropped 0.3%, closing at 1.1605, and GBP lost some 0.58% against the USD, trading at 1.2990. USD rose against a basket of major currencies to the highest level in a year, as China is fueling economy to credit stimulus, which drove the currency to lowest level in 12 months. This morning EUR is trading at 1.1660 and GBP at 1.3020.
Dax lost 0.6% yesterday and lost the 12,700 level. DJI dropped around 0.31%, and finished just above the 25,100 level. Asian markets finished mixed with Nikkei losing 0.29%, Hang Seng +0.68% and SSEC up 2%.
German PPI at 07.00, European Current Account at 09.00. OPEC-JMMC Meetings and G20 Meetings day 1 during the day.
This report was written at 7:30. All times referenced are GMT.
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