Shanghai copper high narrow range fluctuations, short-term rally may be suspended

In terms of the external market, London copper opened at 5718 US dollars / ton, Asian session, affected by the rise in Shanghai copper, London copper short-term rushed to 5775 US dollars / ton, subject to the 20-day moving average rebound blocked, and then a small number of long positions closed, copper prices fell back, back to the daily average after rising, repeatedly tested the 20-day moving average pressure, after the upward rush slowly fell back to the daily moving average, into the European session, the LME announced that copper inventory increased by 17175 tons, the proportion of written off warehouse receipts continued to fall to 31.
34%, London copper dived again, as of 18:20 , London copper reported $5685 / ton
.
Intran copper fell back under the pressure of the US dollar and copper stocks, and cut at the middle track of Bollinger Road, and continued to bear the pressure of falling in the evening, which is expected to be dominated by weak
shocks.

On the macro front, the Fed's December meeting announced a 25 basis point rate hike as scheduled, and the federal funds rate was raised from 0.
25%-0.
5% to 0.
5%-0.
75%, the first rate hike in a year and the second in a decade
.
The Fed said inflation expectations had risen markedly, the labor market had improved, and it expected three rate hikes in 2017, faster
than the two expected at its September meeting.
The dollar index jumped higher
on the news.

In terms of the market, Shanghai copper low rise, the early interval monthly price difference is still maintained around 250 yuan / ton, some downstream before the month to increase the amount of goods, the transaction was once active, but after entering the second trading session, the next month price spread fluctuated sharply, the market transaction was blocked, the holder price mentality weakened, began to gradually reduce the quotation, Thursday is the last trading day of the month before the change, the market generally mainstream quotation began to quote on the 1701 contract, the premium copper quotation discount 80 yuan / ton - discount 40 yuan / ton, Flat water copper discount 200 yuan / ton - discount 140 yuan / ton, wet copper discount 250 yuan / ton - discount 220 yuan / ton, downstream receipt volume increased, the transaction first rose and then suppressed
.
In the afternoon session, the market retreated, but the overnight price difference widened to 230 yuan / ton, the holder seized the last trading opportunity before delivery, gave up the price, discounted the water expansion, flat water copper newspaper discount 250 yuan / ton - discount 200 yuan / ton, premium copper discount 150 yuan / ton - discount 70 yuan / ton
.
Although the transaction price fell slightly to 46480 yuan / ton - 46750 yuan / ton, there were many shipments, few goods received, and the market transaction was light
.
After the month change, judging from the current eager willingness of the holders to exchange cash, it is difficult
for the spot to re-push the water.

Overall, the fundamentals of the copper market have indeed become stronger than before, but it does not support copper prices to get out of the bull market, and copper prices still have the possibility
of returning to fundamentals in the short term.