Dollar glutted with pressure against the Euro on Tuesday after the concerns on the debt eased off. The markets seemed to be relaxed from sovereign debt front making EURO attractive opportunity for buying. This helped the base metals regain lost ground.
The euro rose to 1.2636 versus the dollar, its highest level since mid-May.
The ISM non-manufacturing index indicated that the sector grew for the sixth consecutive month, although the pace of expansion slowed as shown by the index declining to 53.8 in June from 55.4 （a reading above 50 indicates the sector is generally expanding）
Copper tested a one-week high in the domestic as well as international markets.
Among other metals Aluminium, Zinc and Nickel gained by 2%, 1.7% and 1.1% respectively on MCX.
Copper was a major attraction of the day in the futures markets. LME three-month forward of Copper gained $ 90 per tonne and closed at $ 6555 per tonne. This was also a weekly high for Copper prices.
COMEX Copper September expiry contract was $ 2.9710 per lb. The metal now trades with slight losses on Wednesday at $ 2.9640 per lb.
Shanghai Copper prices are now showing marginal up trend and trading at 52390 yuan per tonne, up 260 yuan, after a settlement of 52130 yuan on Tuesday.
MCX Copper closed at Rs 309.7 per kg, up Rs 4, or 1.1%. The markets tested a high of Rs 314 per kg and a low of Rs 305.5 per kg on Tuesday. The opening for the day is likely to be soft with Support at Rs 306 per kg. Resistance for the day will be at Rs 313 per kg.
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