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METALS-London copper edges up as dollar drops, manufacturing outlook supports

MELBOURNE, Sept 7 (Reuters) - London copper edged back towards three-year highs on Thursday as the dollar lost ground against the euro ahead of a European Monetary policy meeting later, while a brighter outlook for global manufacturing growth underpinned prices.

FUNDAMENTALS

* LME COPPER: London Metal Exchange copper edged up 0.3 percent to $6,924 a tonne by 0142 GMT, having closed flat in the previous session. Prices on Tuesday hit the highest since September 2014 at $6,970 a tonne amid a global expansion in manufacturing activity.

* SHFE COPPER: Shanghai Futures Exchange copper traded little changed at 53,150 yuan ($8,146) a tonne.

* DOLLAR: The euro held firm on Thursday ahead of a European Central Bank policy meeting, while the Canadian dollar hovered at two-year highs after the Bank of Canada surprised many by raising interest rates.

* US POLICY: U.S. Federal Reserve Vice Chair Stanley Fischer, a veteran central banker, will step down from his position in mid-October, potentially accelerating President Donald Trump's opportunity to reshape the direction of the central bank.

* SHFE NICKEL: Lower trading fees for nickel and tin traded on the Shanghai Futures Exchange come into force on Thursday, which could boost trading volumes and add to volatility in the contracts.

* STEEL: Iron ore and steel were down more than 1 percent, suggesting that input materials zinc and nickel may come under pressure.

* LME REFORM: The London Metal Exchange is due to release the findings of a major reform plan later in the session that is expected to include a reduction in trading fees for short-dated trades.

* LME UPGRADE: The LME is also set to announce an upgrade to its electronic trading system after falling volumes and user complaints about outages and poor functionality.

* US ECONOMY: U.S. services sector activity accelerated in August amid strong gains in new orders and employment, suggesting that a slowdown in job growth last month was probably temporary.

* BAUXITE: China agreed on Wednesday to loan Guinea $20 billion over almost 20 years in exchange for concessions on bauxite, an ore of aluminum which the West African country has in abundance, the mines minister said.

MARKETS NEWS

* Asian shares ticked up on Thursday after U.S. President Donald Trump and congressional leaders agreed to raise the government debt limit until December, eliminating the risk of a government shutdown for now.

DATA/EVENT AHEAD (GMT)

* China Forex reserves Aug

0600 Germany Industrial output Jul

0645 France Current account Jul

0645 France Trade balance Jul

0900 Euro zone Revised GDP Q2

1145 European Central Bank interest rate decision

1230 ECB President Mario Draghi holds news conference

1230 U.S. Weekly jobless claims

* No exact timing

PRICES

Three month LME copper

Most active ShFE copper

Three month LME aluminum

Most active ShFE aluminum

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

ARBS ($1 = 6.5250 Chinese yuan renminbi)

(Reporting by Melanie Burton; Editing by Richard Pullin)