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FxWirePro: Copper maintain bearish tone, USD strength post higher-than-expected PCE inflation data weighs

Chart - Courtesy Trading View 

Copper was trading 1.30% lower on the day at 3.9970 at around 13:40 GMT.

Price are extending losses for the 3rd consecutive session and have slipped further into the daily cloud.

US dollar gains upside momentum after higher-than-ecpected PCE inflation data, drags commodity prices lower.

US annual PCE inflation rose to 5.4% on a yearly basis in January from 5.3% in December, the US Bureau of Economic Analysis reported on Friday.

The reading came in higher than the market expectation of 4.9%, buoying the dollar across the board.

The annual Core PCE Price Index, the Federal Reserve's preferred gauge of inflation, rose to 4.7% from 4.6% prior, above forecasts at 4.3%.

Technical bias for Copper has turned bearish. Price action has slipped below 55-EMA and is on track to test 110-EMA support at 3.912. 
 

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