LONDON- Copper prices in London hit the lowest in five weeks on Friday, under pressure from a stronger dollar, stronger-than-expected US employment data and mixed trade numbers from top metals consumer China.
Three-month copper on the London Metal Exchange was 3.7 percent lower at $9,773.50 per metric ton after breaking below the 50-day moving average at $9,860 to touch its lowest since May 2 at $9,755.
The dollar surged after data showed the US economy created a lot more jobs than expected last month, suggesting that the Federal Reserve could take time in starting its easing cycle this year.
This made dollar-priced commodities more expensive for buyers using other currencies and in general worsened prospects for growth-dependent metals.
Copper, used in power and construction, has fallen 2.7 percent this week, leaving it 12 percent below the record high of $11,104.5 touched on May 20.
“We had a big rally recently but there were lots of signs that the physical market was not particularly strong, so this pull-back makes sense,” said Dan Smith, head of research at Amalgamated Metal Trading.
In China, indicators remained mixed. May trade data showed better-than-expected exports, suggesting factory owners were managing to find buyers overseas. However, imports increased at a slower pace, highlighting the fragility of domestic consumption.
