{"id":59818,"date":"2012-04-19T10:05:51","date_gmt":"2012-04-19T00:05:51","guid":{"rendered":"http:\/\/www.fnarena.com\/index.php\/2012\/04\/19\/chinese-copper-in-london\/"},"modified":"2012-04-19T10:05:51","modified_gmt":"2012-04-19T00:05:51","slug":"chinese-copper-in-london","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2012\/04\/19\/chinese-copper-in-london\/","title":{"rendered":"Chinese Copper In London?"},"content":{"rendered":"
\n\tBy Jonathan Barratt<\/span><\/div>\n
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\n\tThe London Metals Exchange (LME<\/span>) is currently deciding whether or not it will drop the British pound settlement on metal contracts [which is one settlement option offered alongside US dollars, euros<\/span> and yen] to allow for settlement and clearing in Chinese renminbi<\/span> (RMB<\/span>). We feel that this would be a positive move not only for the LME<\/span> but also for liquidity in the market, as Chinese demand accounts for 40% of global demand and is the major player.<\/div>\n
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\n\tThe move by the LME<\/span> we feel is intuitive, and if they go ahead it will serve to consolidate the LME<\/span> as the major conduit of price discovery and liquidity for the metals. In addition, if China fully recognizes the move for the exchange to settle in RMB<\/span> then it will consolidate the RMB<\/span> as a major currency and provide support to Beijing's decision to internationalize the currency by recently widening the trading band. In addition to the LME<\/span> looking at introducing an RMB<\/span>-based<\/span> settlement of contracts, the Hong Kong Exchange and Clearing Ltd are looking to introduce several RMB-based<\/span> commodity futures and the Hong Kong Mercantile Exchange is looking at RMB gold and copper contracts. It will be an interesting move as you are trading not only the commodity but a pegged currency.<\/div>\n
\n\t
\n\tRecent Chinese GDP data have not been to friendly towards our [long copper] position, however, industrial production data showed continuing support for manufacturing which the market conveniently ignored. We have decided to hold onto the position as we feel that tight supply and positive earnings in the US will provide good support. 
\n\t <\/div>\n
\n\tChart Point<\/u><\/div>\n
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\n\tWell what a week… a break to the topside failed to materialize likewise a break to the downside has also failed to materialize. As a seasoned trader we have decided to hold the position, Why? It’s just a gut feel as movements are just too volatile. Momentum indicators now support higher price action. <\/p>\n

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\n\tProduced by Jonathan Barratt direct from the trading desks of Commodity Broking Services, Barratt's Bulletin provides expert analysis of commodity markets, global indices and foreign exchange movements. Click here <\/a>to take a no obligation 21-day trial to Barratt's or to learn more visit www.barrattsbulletin.com<\/a>. Content included in this article is not by association necessarily the view of FNArena (see our disclaimer).<\/em><\/div>\n

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\n\tThis report is not, and should not be construed as, an offer to buy or sell, or as a solicitation of an offer to buy or sell, products, securities or investments. This report does not, and should not be construed as acting to, sponsor, advocate, endorse or promote products or any other products, securities or investments. This report does not purport to make any recommendations or provide any investment or other advice with respect to the purchase, sale or other disposition of products, securities or investments, including, without limitation, any advice to the effect that any related transaction is appropriate for any investment objective or financial situation of a prospective investor. A decision to invest in securities or investments should not be made in reliance on any of the statements in this report. Before making any investment decision, prospective investors should seek advice from their financial advisers, take into account their individual financial needs and circumstances and carefully consider the risks associated with such investment decision.<\/i><\/p>\n

\t <\/p>\n","protected":false},"excerpt":{"rendered":"

Jonathan Barratt of Barratt’s Bulletin reports on the LME’s intention to cement its global influence by introducing a renminbi settlement option.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[23],"acf":[],"_links":{"self":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/59818"}],"collection":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/comments?post=59818"}],"version-history":[{"count":0,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/59818\/revisions"}],"wp:attachment":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/media?parent=59818"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/categories?post=59818"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/tags?post=59818"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}