Copper Traded Pressured by Strong Dollar, Copper Prices Concern Outlook for Demand

Copper yesterday traded with the positive node and settled 0.12% up at 377.55 after dropping Friday pressured by a strong dollar, also prices weighed on concerns about the outlook for demand as the euro zone debt crisis deepened.

Market participants remain focused on political developments in Europe, as leaders there struggle to stem the spread of sovereign debt problems to larger economies.

In Europe, the ongoing political crisis is feeding through into a significant tightening of credit, and that negative effect is a clear economic shock.

Highlighting the deepening debt crisis in the euro zone, Italy paid a record 6.5 percent to borrow money over six months on Friday and its longer-term funding costs soared far above levels seen as sustainable for public finances.

The International Copper Study Group (ICSG) said this week world refined copper market was in deficit of 161,000 tonnes in the first eight months of the year, although that's narrower than a deficit of 339,000 tonnes in the same period last year.

Latest data shows inventories of the metal held in LME-monitored warehouses fell to 394,725 tonnes, the lowest since early February.

In yesterday's trading session Copper has touched the low of 377.05 after opening at 377.7, and finally settled at 377.55.

For today's session market is looking to take support at 377.1, a break below could see a test of 376.6 and where as resistance is now likely to be seen at 378, a move above could see prices testing 378.5.

Copper trading range is 376.6-378.5.
Copper slipped pressured by strong $, also weighed on concerns about outlook for demand as euro crisis deepened, EU debt crisis remains in focus as traders worry about the global economic outlook
Codelco "optimistic" in medium to long-term copper price outlook.