Weaker dollar bumps copper up from two-month low

LONDON, Feb 12 (Reuters) – Copper prices rose on Monday from a two-month low last week, helped by a weaker dollar and more stable global markets that encouraged a return to riskier assets. A weaker dollar makes metals cheaper for users of other currencies and can spur demand. “A dip in the dollar has lifted the whole base metals sector this morning,” Societe Generale analyst Robin Bhar said. “Sentiment is better. There’s nothing fundamental. It’s external factors affecting the market.” Industrial metals prices have fallen this year but remain near multi-year highs. “There’s a good argument for buying the dips and still being generally positive for metals,” Bhar said. COPPER: Benchmark three-month copper on the London Metal Exchange was up 1.3 percent at $6,844 a tonne at 1052 GMT after on Friday touching $6,733, the lowest since Dec. 14. TECHNICALS: Copper was struggling to rise above its 100-day moving average at $6,892 a tonne. Fibonacci resistance was at $6,897 and copper prices were likely to fall further, Reuters technical analyst Wang Tao said. POSITIONING: Speculators’ net long position on the Comex exchange has more than halved since the start of the year, putting pressure on prices. Bets on price rises have also decreased on the LME, with the net long the lowest since May. STRIKES: Fears of lower supply this year due to labour strikes had helped push copper higher. But early wage deals at two copper mines may be a signpost for further agreements with mine workers. STOCKS: Inventories in LME-registered warehouses are the highest in a year after inflows of 130,000 tonnes since mid-January took the total to more than 330,000 tonnes, suggesting plentiful supply. LME data on Monday showed a slight decrease in stocks. GLOBAL MARKETS: World shares staggered higher on Monday after their worst week in two years, attempting to brush off fresh rises in global bond yields while equity futures pointed to a firmer Wall Street session ahead. U.S. DEMAND: President Donald Trump will roll out an infrastructure plan on Monday that could fuel demand for metals but already faces significant hurdles in Congress. CHINA HOLIDAY: The Shanghai Futures Exchange will close from the evening of Feb. 14 for Lunar New Year celebrations. OTHER METALS: LME aluminium was up 0.5 percent at $2,134.50 a tonne, zinc was 0.2 percent higher at $3,391.50, nickel had gained 0.8 percent to $13,080, lead was down 0.8 percent at $2,514 and tin was 0.6 percent higher at $21,150.