DJ BASE METALS: Copper Futures Climb On Weak Dollar, US Data
–Comex May copper up 0.9% to $3.935 a pound
–Dollar retreats, boosting allure of dollar-denominated commodities
–Traders focus on a series of U.S. economic reports
By Tatyana Shumsky Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)–Copper futures rose due to a weaker dollar and as traders looked ahead to a flurry of economic news from the U.S.
The most actively traded contract, for May delivery, was recently up 3.7 cents, or 0.9%, at $3.935 a pound on the Comex division of the New York Mercantile Exchange.
The dollar retreated, giving way to the euro after weaker-than-expected U.S. inflation data. The euro was recently trading at $1.3119, up from $1.3079 late Thursday in New York.
Prices of dollar-denominated commodity futures like copper tend to rise as the U.S. dollar weakens against other currencies as the underlying commodities become cheaper for foreign investors, luring them to the market.
Copper traders are closely focused on a string of U.S. economic reports due to be released throughout Friday. Copper prices are highly sensitive to shifts in business activity as the metal is used in a wide variety of everyday goods like cellphones, cars and household plumbing.
“Today should prove to be an important day as we have plenty of numbers out in the U.S. to whet the appetite of traders,” said RBC Capital Markets.
U.S. industrial output was unchanged in February from a month earlier as lower mining activity was balanced by a spurt in manufacturing. Meanwhile, capacity utilization slipped to 78.7%, from a revised 78.8% the previous month.
-By Tatyana Shumsky, Dow Jones Newswires; 212-416-3095; email@example.com
For full article: http://www.metalprices.com/subscription/news/metalNews.asp?id=20120316007973&svc=ODJ%20&title=BASE%20METALS:%20Copper%20Futures%20Climb%20On%20Weak%20Dollar,%20US%20Data%20(Dow%20Jones)%20&date=03/16/12%2013:56%A001:56