MTECHTIPS;-Copper swings between gains and losses ahead of Fed meeting by MtechTips2


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 Copper swings between gains and losses
         ahead of Fed meeting

Copper futures fluctuated between small gains and losses on
  Tuesday, as traders awaited the outcome of the Federal
   Reserve’s policy-setting meeting on Wednesday, amid
  expectations for a small reduction in the bank’s stimulus
program. On the Comex division of the New York Mercantile
 Exchange, copper futures for December delivery traded at
   USD3.219 a pound during European morning trade, down
0.1%. The December contract settled 0.6% higher at USD3.222
a pound on Monday. Copper prices traded in a range between
     USD3.198 a pound, the daily low and a session high of
 USD3.231 a pound. Copper prices were likely to find support
     at USD3.191 a pound, the low from September 13 and
  resistance at USD3.272 a pound, the high from September
     12.Market analysts expected the Fed will start cutting
  monthly bond purchases by USD10 billion to USD75 billion
 when it concludes its two-day policy meeting on Wednesday.
Monthly purchases of Treasuries will be scaled back by USD10
   billion to USD35 billion, while mortgage-bond buying will
 remain unchanged at USD40 billion. Copper prices advanced
   on Monday as the U.S. dollar came under pressure after
former U.S. Treasury Secretary Lawrence Summers bowed out
 of the race to succeed Ben Bernanke as the next chairman of
the U.S. central bank. Summers’ was perceived as being likely
  to unwind economic stimulus measures more aggressively
 than the other main contender for the post, current Fed Vice
                   Chairwoman Janet Yelled.

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