The EUR/USD exchange rate plunged yesterday after Christine Lagarde reaffirmed her belief that inflation would quickly fall below 2% and that an ECB rate hike was highly unlikely by 2022. From a technical point of view, the next support for the euro is at 1.1290 USD. It is possible that it will be reached before the end of the…
The power spot prices soared near 230€/MWh in northwestern Europe for today, lifted by forecasts of higher demand and weak wind and solar generation. The day-ahead prices averaged 227.96€/MWh in Germany, France, Belgium and the Netherlands, +57.19€/MWh from Friday and +27.55€/MWh week-on-week. The EUAs climbed to a new 5-week high on Friday morning, but quickly…
European gas prices were mixed on Friday, torn between lower Norwegian supply, hopes of higher Russian flows and the additional easing in global coal markets. Norwegian flows dropped to 282 mm cm/day on average on Friday, compared to 301 mm cm/day on Thursday, still impacted by the unplanned outages at the Karsto gas processing plant…
Crude prices remained pressured, sticking to the 80-82 $/b range, as the possibility of a US SPR release limited prompt tightness. With such growing political pressure and uncertainty, money managers continued to cut their exposure to major futures markets (Brent, WTI). The Brent open interest from financial players declined by 94k since this summer when…
Activity seemed to accelerate in China in October: +3.5% after +3.1% yoy for industrial production and +4.9% after +4.4% yoy for retail sales. In fact, only industrial production returned to normal growth for the month, as the energy supply problems were resolved. But the chart below clearly shows that this is not the case for retail sales,…
