- EU allowances traded in a tight range for most of last week, until Friday, when EUA prices dropped to a six-week low at EUR68.17 in the DEC24 future. While market consensus is that the EU election will have limited impact on the EU ETS, option-related price action and a debate around the possible fading of the EUAs-TTF correlation were the main characteristics last week. December EUA Futures closed on Friday at EUR68.28 per tonne, a weekly loss of 4.25%. Currently, December EUA Futures trade at EUR68.25 per tonne and spot at EUR66.79 per tonne.
- The option expiry on Wednesday will be an important factor to watch during the next few days and could bring additional volatility. On the downside, EUR67.78 is an important Fibonacci level watched by traders.