Copper settled up 0.65% at 444.25 as investors and speculators booked fresh positions in the industrial metal after a report said that US services activity expanded at a faster clip last month bolstering the demand outlook for copper. During the Chinese New Year holiday, the euro zone's CPI, US January ADP employment and manufacturing PMI all came in negative. These downbeat economic reports, combined with slides in financial markets and other metals prices, dragged LME prices down. Since US economic data released overnight improved, the nation's shares bounced back, with the Dow posting the biggest daily gains in the year. The ECB also kept its interest rate unchanged. The ECB and BOE both kept their monetary policies unchanged on Thursday. The euro, however, rose sharply, benefiting from comments by the ECB in its press conference. The BOE's decision to maintain its interest rate matched forecasts, but that of the ECB stoked controversies in markets. Markets have high expectations that the ECB will take some measures since the euro zone's inflation continued to decline and its unemployment remained lofty. In its subsequent press conference, the ECB just announced as usual that it would stand ready to take some measures to cope with inflation. US initial jobless claims for last week released overnight were 331,000, less than the estimated 335,000, boosting market sentiment hurt by downbeat ADP employment and fueling hopes of positive US nonfarm payrolls. US shared rebounded considerably, aided by these encouraging economic data. Attention should be focused on US nonfarm payrolls on Friday. Technically market is under short covering now price are getting support at 441.9 and below same could see a test of 439.5 level, And resistance is now likely to be seen at 446.8, a move above could see prices testing 449.3.

Trading Ideas:

Copper trading range for the day is 439.5-449.3.

Copper firmed on a stronger euro, on expectations of a pickup in prices when China returns from holiday.

Prices earlier seen under pressure on evidence that China's factories had a slow start to the year, and after fitful U. S. growth data.

China's factories are lightly stocked given copper imports were uneconomic in January when LME prices shot to seven month peaks.