FxWirePro: Copper prices sink, down over 10% for the week amid mounting fears of decline in China’s GDP

Copper chart - Trading View 

Copper price sinks as China stares at a potential first GDP drop since 1976, further downside on cards.

Prices under pressure, were down over 10% for the week till date and nearly 13% down for the month.

China is responsible for more half the world’s copper consumption and the bulk of global production.

Many economists are now forecasting an historic decline in China’s GDP for the January-March quarter.

Copper is particularly vulnerable to broader economic conditions given its widespread use in electrical grids, construction, transportation and industry.

Technical studies also paint a strongly bearish picture with rising volatility and bearish momentum. 

Price has breached 78.6% Fib retracement at 2.232. Next major support lies at 2.094 (88.6% Fib).