Reuters reported that London copper fell due to a stronger dollar and concerns over the euro zone but positive data out of the United States, the world's largest economy, helped to prevent more losses.

A still modest level of copper buying in top consumer China, as the market heads into the traditionally strong second quarter, also held back the base metals complex.

Three-month copper on the London Metal Exchange was down 0.6% at USD 7,580 per tonne from a close of USD 7,624 on Tuesday. Although copper has risen from 7 month lows hit last week it has failed to gather much steam.

Mr Dan Smith analyst of Standard Chartered said that “Sentiment around Europe has turned slightly more negative and the threats of supply disruption which might have given prices a lift in the past have really had very little effect so far. So it does suggest the market is in quite a bearish frame of mind."

The euro fell to a 4 month low against the dollar, which would make metals more expensive for holders of the European single currency, as the implications of the Cyprus bank bailout deal weighed on sentiment.

Cyprus is expected to complete capital control measures on Wednesday to prevent a run on banks by depositors after the country agreed a bailout deal that will wipe out some senior bank bondholders and impose losses on large depositors.

The worry among investors and economists is that despite attempts by euro zone officials to quash the idea, the plan could become a blueprint for any future bailout in the troubled currency bloc.

Credit Suisse said that political events such as the bail-out negotiations for Cyprus always pose a risk that can derail the underlying fundamental trends. However, the effects of these events are most likely temporary.

After coming under significant selling pressure in February and March Credit Suisse said, the metals sector is well-supplied and the question is whether the economic recovery is strong enough to tighten market balances and push prices higher again.

At current price levels we think such a scenario is likely. But markets were quiet and traders expect volumes to tail off ahead of the long weekend. The London Metal Exchange is closed on Friday and Monday for Easter, while China's markets are shut on April 4 and 5.