IND: Copper Declines As Dollar Gains Some Ground Against EURO
Dollar gaining ground brought some declines in Copper prices. The markets have remained moving forward on strong ISM numbers from US and probability of Copper supply shortage in 2011. Today, the markets took track from the loss of EURO. The greenback trades at 1.3139 against EURO, up 14 pips.
Copper benchmark contract on MCX is trading at Rs. 442 per kg, down Rs. 1.2, or 0.3%. For intra day, the markets are expected to find supports at Rs. 440-438 per kg, resistance for the contract is at Rs. 445 per kg. COMEX Copper March expiry was at $ 4.4045 per pound, down 0.035 cents.
US service sector showed improvement for the fourth consecutive month. The December Composite Index for the service and construction sectors from the Institute for Supply Management (ISM) rose to 57.1.0 from 55.0 in November.
In another news, China's 2010 economic growth is estimated to reach about 10 percent, according to central bank governor Zhou Xiaochuan. In a speech by the People's Bank of China, Zhou said he was not quite confident that the nation's economy has returned to normal, as external conditions continue exerting an important impact on China's economic recovery.
He also reiterated that the government would promote a market-oriented reform of the interest rate regime in a gradual and unwavering way. Zhou first delivered his speech on Dec. 15 when policymakers were intensifying their efforts to curb property prices and dampen inflation, as the nation's consumer price index hit a 28-month high of 5.1 percent in November.
