Copper drifts lower

Housing data from the US has done nothing to help force the copper price higher.

After hitting a three-month low copper did manage a reasonable bounce, but since contradicting housing data was posted by the US on Tuesday and Wednesday the price has broadly traded sideways.

The overriding issues surrounding copper remain. A number of large producers have already stated that they are seeing an increase in supply due to increased productivity in their mines, and on the demand side of the equation Europe is still in a recovery phase – although France looks like it is coming perilously close to turning back into a recession. The fear of this is shackling the ambitions of European manufacturers and subsequently their productivity.

With the US shut due to the Thanksgiving holiday volumes on commodities will be very low, and as a consequence traders should be conscious of a greater chance of volatility.

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