Speculation on Fed’s Next Move Weighs on Copper Futures

Copper futures are lower for a second day on the outlook our domestic economy is strengthening to the point the Federal Reserve bank may consider tapering the ongoing stimulus.  The United States is the second biggest consumer of copper in the world.

Service industries account for the biggest part of our nations economy, and this reportedly expanded last month.  Data yesterday reports US manufacturing increased by the fastest pace in two years in November.

When we consider the notion that QE is supportive to Copper prices, and the concept of any future tapering would be harmful to prices, we find ourselves in a situation where good manufacturing numbers are now bad news for the market,” says Kevin Riordan, director of research at Capital Trading Group in Chicago, regarding the current copper futures situation. 

We are short copper futures with the overall prevailing trend.  Copper futures is testing the mid-November low at this time.

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