Copper Rises on Weaker USD ahead of Fed Chairmans Testimony

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HANOI, June 22 Reuters Copper prices advanced on Tuesday as the dollar paused for breath ahead of highlyanticipated testimony from U.S. Federal Reserve Chairman Jerome Powell, making greenbackpriced metals cheaper for holders of other currencies.

The dollar has gained sharply since the Fed last week flagged soonerthanexpected interest rate hikes, but dipped on Monday as markets looked to Powells testimony for further guidance.

Threemonth copper on the London Metal Exchange was up 0.2 at 9,201.50 a tonne, as of 0543 GMT, while the mosttraded July copper contract on the Shanghai Futures Exchange advanced 0.9 to 67,360 yuan 10,418.21 a tonne.

If the ShFE price remains below 70,000 this week, downstream purchases may still be relatively active, which may form a certain supporting effect on copper prices, said Huatai Futures in a note.

But on the other hand, the pressure on the supply side is relatively high, mainly due to the pressure of state reserves selling and the continuous rebound of treatment charges prices, the company said, adding that copper was expected to be volatile in the coming sessions.

FUNDAMENTALS

The global world refined copper market showed a 19,000 tonnes deficit in March, compared with a 108,000 tonnes surplus in February, the International Copper Study Group said.

The global nickel market deficit narrowed to 15,600 tonnes in April from a shortfall of 17,100 tonnes in March, International Nickel Study Group data showed.

The speculative net…

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