LME Transaction Overview Latest Report

The London Metal Exchange (LME) base metals generally fell on Tuesday, with traders saying that a stronger dollar caused profit-taking sales. The dollar rose against the euro and the yen on Tuesday as investors locked in profits against other currencies before the Federal Reserve Board (FED) expected to announce the fifth rate increase this year. A trader said, "The dollar opened lower, incentivizing some short-covering buying on the copper; but as the dollar rises, metal prices have fallen." The Fed is expected to announce a rate hike of 25 basis points. This will make the U.S. interest rate higher than the current euro zone rate of 2% for the first time since early 2001. The FED interest rate statement will be announced at 1915GMT. In the early morning session of the New York foreign exchange market, the euro/dollar reported at 1.3272 US dollars, down 0.3% on the same day, and hit a record high of 1.3470 at the beginning of last week. Three-month copper closed at $2,968 per ton, down $2 from Monday's consolidated trading. The spot/three-month reverse spread widened to $130/135, compared with less than $100 last week. Spot / January reverse price difference is 58 US dollars, closed at 53 US dollars on Monday. An analyst said, "After entering the New Year, the reversal of the spread may ease, and the price may once again weaken, but this depends largely on the trend of the dollar." Three-month aluminum closed down 17 dollars at 1,795 dollars. Analysts pointed out that aluminum needs to break through the resistance at 1,820/30 to continue its recent rally.