Copper settled down -0.93% at 447.1 as strong U. S. economic data strengthened the view that the Federal Reserve might curtail monetary stimulus sooner than expected. The initial jobless claims for last week and US final GDP growth for Q3 were both reported above forecast, giving a brief boost to commodities. Although the manufacturing expansion reflected by upbeat data might suggested rising copper demand, traders still concerned that continued US recovery would allow the Fed to start slowing its bond buying. Notably, although the sharp decline in US dollar index could lend certain support to base metals, market saw no strong negative correlation between the two recently, particularly before the release of the nonfarm payroll when concerns over QE reductions weakened the greenback, so investors should be wary of any risk arising therefrom. Atlanta Fed President Dennis Lockhart who has taken a neutral position expressed his optimism towards the US economic outlook, and reiterated that the QE wind-down would be discussed at FOMC's December meeting. He added that the Fed should discuss adjusting its so-called forward guidance on when rates would finally rise. The initial jobless claims hit their lowest since early September last week at 298,000, dropping below 300,000 for the second time since 2009 when the cyclical economic gloom ended. Technically market is under long liquidation as market has witnessed drop in open interest by -3.16% to settled at 13867 while prices down -4.2 rupee, now Copper is getting support at 445.4 and below same could see a test of 443.7 level, And resistance is now likely to be seen at 449.4, a move above could see prices testing 451.7.

Trading Ideas:

Copper trading range for the day is 443.7-451.7.

Copper dropped as strong U. S. economic data strengthened the view that the Federal Reserve might curtail monetary stimulus sooner than expected.

The European Central Bank left interest rates unchanged pausing to assess the health of the euro zone recovery

Data showing greater-than-expected hiring by U. S. private firms boosted speculation that forthcoming non-farm payrolls figures could also beat expectations