-London metals broadly softer as dollar posts slight rebound
By Melanie Burton
MELBOURNE, Aug 17 (Reuters) - London copper drifted lower on Wednesday as northern hemisphere summer holidays drained markets of liquidity and direction, with some weight coming from a dollar rebound ahead of a U.S. monetary policy meeting later in the session.
The dollar climbed off a seven-week low following hawkish comments from Federal Reserve officials, but scepticism about the Fed's willingness to tighten policy limited the bounce.
A stronger dollar erodes the buying power for commodities users paying with other currencies.
Comments by Federal Reserve policymakers that the Fed could raise U.S. interest rates as early as next month also darkened demand prospects for the cash-intensive metals industry, which has been underpinned by a glut of cheap capital.
Three-month copper on the London Metal Exchange edged down by 0.3 percent $4,795 by 0704 GMT. Prices on Friday fell to a one-month low at $4,750.50.
Shanghai Futures Exchange copper edged up by 0.2 percent to 37,220 yuan ($5,613) a tonne.
Nickel climbed on Wednesday, rebounding from three-week lows reached in the previous session.
Three-month nickel on the London Metal Exchange traded up 0.2 percent at $10,320 a tonne. Prices have rallied by more than 20 percent since the start of australia attraction pass June on fears that the Philippines would clamp down on ore exports to China, but have slipped 3 percent this month as the closures appear to have run their course.
"News that the Philippines was nearing the end of its mining review raised the prospect of recently closed nickel mines being reopened," said ANZ in a report.
The rising expectations that the Federal Reserve may raise rates soon came after two policymakers on Tuesday said the economic stars now appear to be aligning for an increase despite weak U.S. economic growth in the first half of 2016.
A clearer sign of the Fed's intentions may be revealed when minutes from their meeting at the end of July are released later on Wednesday.
U.S. industrial production rose more than expected in July, according to Federal Reserve data released on Tuesday.
In news, the world's biggest miner BHP Billiton on Tuesday said deep cost cuts and a steady elimination of oversupply will bolster its business following a record loss caused by a bad bet on shale and a dam disaster in Brazil.
PRICES
Three month LME copper
Most active ShFE copper
Three month LME aluminium
Most active ShFE aluminium
Three month LME zinc
Most active ShFE zinc
Three month LME lead
Most active ShFE lead
Three month LME nickel
Most active ShFE nickel
Three month LME tin
Most active ShFE tin
($1 = 6.6309 Chinese yuan renminbi) (Reporting by Melanie Burton; Editing by Richard Pullin and Christian Schmollinger)
