Copper prices were rising today for the first time in three days, despite increasing turmoil in the eurozone, on the hope that China’s recent rate cut will improve demand for the metal.
Investors were also speculating that the US Federal Reserve will introduce additional monetary easing measures to revive the slowing economy, boosting copper demand. US inflation figures and initial jobless claims data today are very important in that context. The Consumer Price Index in May is expected to fall by 0.2% after being stagnant in the prior month.
Falling inflation and weak macroeconomic data provide perfect ammunition for the Federal Reserve to kick-start further monetary easing at its 19 June meeting. However, prices were capped as investors were concerned about the Greek elections over the weekend and were unwilling to take major positions.