Zinc recovered on short covering and settled 1.22% up at 102.15 tracking LME zinc prices which opened at $1765/mt and rose to $1788.3/mt as the US dollar index plummeted. EU leaders approved the injection of EUR 120 billion, including EUR 10 billion from European Investment Bank. As US consumers spending and exports growth in 1Q was lower than expected, despite jobless claims decreased last week and economic growth was in line with expectations, LME zinc prices dipped to $1776/mt, and pared some losses to close at $1781.5/mt, up $17.5/mt. Meanwhile, the US initial jobless claims fell last week but were still near a high in recent years, while the Kansas City Fed Manufacturing Index slipped sharply in June. Consumer spending and export growth for 1Q in the US also came in below market anticipations, and failed to give a boost to markets. Although European leaders reached consensus on the EUR 120 billion pact, many leaders at the summit cast doubts. Furthermore, Spanish and Italian bond yields remain high. In this context, the euro should keep fluctuating before the European summit ends. For today's session market is looking to take support at 101.5, a break below could see a test of 100.9 and whereas resistance is now likely to be seen at 102.7, a move above could see prices testing 103.2.

Trading Ideas:

Zinc trading range for the day is 100.88-103.18.

Zinc recovered on short covering and settled 1.22% as the US dollar index plummeted.

EU leaders approved the injection of EUR 120 billion, including EUR 10 billion from European Investment Bank.

European leaders reached consensus on the EUR 120 billion pact, many leaders at the summit cast doubts.