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Copper slips from 1 week high on weak euro

Copper slips from 1 week high on weak euro

Copper prices steadied on Thursday as the euro slipped from earlier highs, but optimism about the outlook for global
growth provided some support after data showed China’s economy is
stabilising.
Three-month copper on the London Metal Exchange traded at
$8,215 a tonne in official rings, down from Wednesday’s close of $8,220.
It hit a one-week high of $8,260 earlier in the session.
The euro pared earlier gains against the dollar which were hit after
Spain sold 4.61 billion euros of government bonds, paying the least since
February to borrow over 10 years and selling more of the paper than expected.
A strong dollar makes commodities priced in the U.S. unit more
expensive for holders of other currencies.
Volumes, however, remained thin as LME Week – an annual gathering in
London of the industrial metals industry – draws to a close.
Copper prices have been stuck in a range between $8,100 and $8,400 in
the past few weeks as uncertainty about the outlook for demand for
industrial metals keeps investors cautious.
“The most likely outcome to make a major move (to push prices out of
its range) is on the euro side,” said Ross Strachan, economist at Capital
Economics.
“We have had quite a bit of improved optimism lately surrounding the
euro zone. But we don’t think that is realistically going to be sustained.
When that starts to unravel, we could well see metals prices move lower.”



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