Copper settled down -0.8% at 431.95 on profit booking but ended with gains on weekly basis on expectations the global economy is on a firmer footing and on a brighter outlook. China's factory activity expanded at its fastest in 18 months in July, data showed, reinforcing confidence over the demand outlook from the world's top copper consumer. There was also support from strong job market data in the United States, although this was tempered by an 8.1 percent fall in new home sales in June. Copper is used extensively in copper wiring. Additionally, the world's biggest copper producer, Codelco, which admitted for the first time that its newest mine was behind schedule because of problems with its roaster. This also underpinned copper prices. But investors shrugged off a looming resumption in concentrate shipments from miners in major exporter Indonesia. Last Friday, the news that the EU set to impose new sanctions on Russia and poor data from Germany sent the euro to an eight-month low. German business climate index fell to a trough of 108 in July, missing the expected 109.4, while the country’s current economic situation index also dropped below the estimated 103.4 to 112.9, dragging down the euro. Although US June durable goods orders outstripped expectations, core capital goods delivery decreased 1.0% in the month. Investors should be focused on US July manufacturing PMI and pending home sales for June due for release late on Monday, as well as the ongoing violence between Palestine and Israel.  In the week ahead, investors will be looking ahead to Wednesday’s monetary policy announcement by Fed. Technically market is under long liquidation and getting support at 430 and below same could see a test of 428 level, And resistance is now likely to be seen at 435.4, a move above could see prices testing 438.8.

Trading Ideas:

Copper trading range for the day is 428-438.8.

Copper dropped on profit booking but gains on weekly basis on expectations the global economy is on a firmer footing and on a brighter outlook.

There was also support from strong job market data in the United States, although this was tempered by an 8.1 percent fall in new home sales in June

Investors should be focused on US July manufacturing PMI and pending home sales for June due for release late today