Nickel yesterday traded with the negative node and settled -0.42% down at 930.20 tracking LME nickel prices overnight opened at $16,950/mt, with the high end $17,180/mt, finding support at $16,661/mt. Finally, LME nickel prices closed at $16,735/mt, down $250/mt. Finally, LME nickel prices closed at $16,985/mt, down $235/mt. ECB lowered interest rates by 25 basis points, in line with market expectations, and China's central bank also lowered interest rates unexpectedly, causing LME nickel prices to fluctuate. As the market believed interest rate decreases mean recession, LME nickel prices closed at $16,735/mt, down $250/mt. LME base metals prices fell slightly as the market was cautious due to unclear economic situation. But expectations that liquidity will improve grew as central banks took actions. China's central bank announced unexpectedly that it will lower one-year deposit interest rates by 0.25% points, and one-year loans interest rates by 0.31% points, effective July 6th, and ECB also lowered interest rates by 25 basis points, to 0.75%. Earlier in the day, BoE announced it will maintain interest rates unchanged at
0.5%, and will increase 50 pound of quantitative easing. Metals will likely rebound in the short term. For today's session market is looking to take support at 922.5, a break below could see a test of 914.86 and where as resistance is now likely to be seen at 942.6, a move above could see prices testing 955.06.

Trading Ideas:

Nickel trading range for the day is 914.87-955.

Nickel dropped as the market believed interest rate decreases mean recession

Nickel Mining Ltd will continue to suspend operations at its Bucko Lake Nickel mine in Manitoba due to low prices.

Cuts in interest rates from central banks and optimism towards the US nonfarm payroll report will help improve market sentiment