Forexpros - Copper futures came under heavy selling pressure during European morning hours on Thursday, as traders shunned the industrial metal ahead of data expected to show a deepening slowdown in Chinese economic growth. Copper prices came under further pressure after the minutes of the Federal Reserve’s latest policy meeting disappointed expectations for further easing in the U.S. On the Comex division of the New York Mercantile Exchange, copper futures for September delivery traded at USD3.410 a pound during European morning trade, dropping 1.1%. It earlier fell by as much as 1.3% to trade at a session low of USD3.406 a pound. Copper prices came under pressure after minutes of the Fed’s June policy-setting meeting released Wednesday revealed that only a few board members thought that more asset purchases would be necessary. Several other officials indicated that more action could be warranted only if growth slows, risks intensified or if inflation seemed likely to fall “persistently� below their goal. Just four Fed officials mentioned more quantitative easing in their individual forecasts, two saying they supported more easing and two saying they would consider it. The reduced easing hopes boosted the U.S. dollar. The euro dropped to a fresh two-year low against the greenback, while the dollar index hit its highest level since July 2010. A stronger dollar reduces demand for raw materials as an alternative investment and makes dollar-priced commodities more expensive for holders of other currencies. Meanwhile, copper traders were looking ahead to Chinese second quarter growth figures due out on Friday, to gauge whether China is a heading towards a hard or a soft landing. A deeper slowdown in China would impair a global expansion that is already faltering because of the ongoing debt crisis in the euro zone. The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year. Fears over the global economic outlook intensified after official data Tuesday showed that Chinese exports and imports in June slowed from the previous month, as weakening global demand weighed. Markets also remained jittery after the European Central Bank’s monthly bulletin reiterated that downside risks have materialized and that growth in the region will remain weak. Europe as a region is second in global demand for the industrial metal. Prices have tracked investor sentiment toward the euro zone’s debt crisis in recent months. Elsewhere on the Comex, gold for August delivery fell 0.6% to trade at USD1,566.05 a troy ounce, while silver for September delivery dropped 1.05% to trade at USD26.74 a troy ounce.

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