Copper: Trichet and crude oil save the day
for copper
Copper started the day on a soft note with Wednesday's
selling pressure spilling over to
yesterday's trading. The falling euro and
weak crude oil prices on Wednesday's crude inventory emboldened the funds to sell the red metal
aggressively and copper slipped to its
key support point. The euro slipped lower
on the ECB's decision (though widely anticipated) to hold its benchmark rate steady at
3.5%. However the hawkish comments of ECB
President Jean- Claude Trichet (that the
inflation rates are likely to increase later this year making it very likely that the ECB
will raise rates in March and could go
for one more hike after March) helped the
euro to surge past $1.3000.