Chinese PMI might send copper down.
Here's how Chinese PMI can influence copper prices:
Strong PMI (above 50): A higher PMI reading indicates a growing manufacturing sector, which is a positive sign for copper demand. As manufacturing activities increase, so does the need for copper, as it is an essential material used in various industries, including construction, electronics, and infrastructure. This higher demand for copper can drive up prices.
Weak PMI (below 50): A lower PMI reading suggests a contraction in the manufacturing sector, which can signal reduced copper demand. A slowdown in manufacturing activities can lead to lower consumption of copper, potentially putting downward pressure on copper prices.
The current PMI is below 50, indicating a contraction in economic activity. If the upcoming PMI data also falls below expectations, it could lead to increased volatility in the copper price and potentially create a favorable environment for a short trade.
Strong PMI (above 50): A higher PMI reading indicates a growing manufacturing sector, which is a positive sign for copper demand. As manufacturing activities increase, so does the need for copper, as it is an essential material used in various industries, including construction, electronics, and infrastructure. This higher demand for copper can drive up prices.
Weak PMI (below 50): A lower PMI reading suggests a contraction in the manufacturing sector, which can signal reduced copper demand. A slowdown in manufacturing activities can lead to lower consumption of copper, potentially putting downward pressure on copper prices.
The current PMI is below 50, indicating a contraction in economic activity. If the upcoming PMI data also falls below expectations, it could lead to increased volatility in the copper price and potentially create a favorable environment for a short trade.
Order cancelled:
Manufacturing PMI
Prev: 49.0 Expt: 48.9 Curr: 49.3
Expectation was beaten, but still below 50.
Setup canceled.
Prev: 49.0 Expt: 48.9 Curr: 49.3
Expectation was beaten, but still below 50.
Setup canceled.