Copper settled down -0.73% at 422.85 traded near the lowest in almost a week after China reported industrial profit growth slowed and before economic expansion data from the US. Economic releases out yesterday were mixed. September Gfk consumer confidence index for Germany posted the first fall since November 2013, indicating deteriorating economy in the euro zone. Italy’s August Istat consumer confidence index also dropped. The poor data raised expectation for further stimulus by the European Central Bank, boosting European stocks. However, ECB officials said more easing policies are not expected at the August meeting unless inflation falls sharply. As the upcoming targeted longer-term refinancing operation, or the TLTRO, watered down the influence from potential accommodative policies, the euro picked up some. European Central Bank Chief Mario Draghi stated last Friday in Jackson Hole that the ECB is set to unveil more economic stimulus measures, raising expectations for quantitative easing (QE) in the euro zone. Meanwhile, the ECB hired BlackRock, the world’s biggest money manager, to advise on developing a program to buy asset-backed securities, which should help increase liquidity in financial markets. In the US, the Congressional Budget Office raised forecast for the federal government budget deficit this year to USD 506 billion, or 2.9% of the GDP, up USD 14 billion from the previous projection. It slashed the US GDP growth forecast from 3.1% to 1.5% for 2014. Technically market is under long liquidation as market has witnessed drop in open interest by -29.21% to settled at 6250 while prices down -3.1 rupee, now Copper is getting support at 421.4 and below same could see a test of 419.8 level, And resistance is now likely to be seen at 424.9, a move above could see prices testing 426.8.

Trading Ideas:

Copper trading range for the day is 419.8-426.8.

Copper edged lower on profit booking after prices rose on signs of growing strength in the U.S. economic recovery.

Orders for long-lasting U.S. manufactured goods posted their biggest gain on record in July, helped by strong overseas demand.

ECB President told that the central bank is ready to take more unconventional action if needed to stimulate a sluggish euro zone economy.