EUAs posted 4.2% gain on strong auction result

The power spot prices rebounded yesterday in Germany, Belgium and the Netherlands amid forecasts of easing renewable generation, but slightly fade din France on expectations of higher nuclear availability. The day-ahead prices averaged 184.01€/MWh in the four countries, +12.87€/t day-on-day.

The carbon prices reversed from a slightly bearish opening and rose by more than 4% on Wednesday after the daily auction cleared with a massive 25-cent premium to the secondary spot market and 1.89 cover ratio, marking the higher demand in primary sales so far with this year. The EUA Dec.22 closed the session at 85.59, +3.50€/t from Wednesday’s settlement. 

The benchmark contract settling above key technical resistance could suggest further upside, but technical indicators remain mixed with the MACD starting to point toward an upward trajectory whereas the RSI suggests EUAs are nearly overbought. Prices are retreating this morning, likely pressured by the falling oil and financial markets which could be enough to break yesterday’s bullish move.

Lifted by the rising gas and emissions prices, the power forward prices posted moderate gains along the curve.