Dear Ladies and Gentlemen,
Strong plus signs characterize the market trends last week. Compared to the US dollar, the euro reached the highest level since October last year, immediately before the election of Donald Trump as the President of the United States. But the initial Trump euphoria has come down noticeable. As even an impeachment is now open discussed, investors are increasingly losing confidence in the dollar.
The oil price also rose significantly in the last week. Saudi Arabia and Russia have already made progress with the extension of the production restrictions, and the market is also expecting approval by the OPEC meeting this week. This would mean that the limits on production volumes would be extended by March 2018, which could lead to a further, perhaps even significant price increase.
As a result of these trends, the carbon market has absorbed the large auction volumes of the past week with ease and even driven the market with auction results above the current spot price. With an increase of EUR 0.40, the course clearly broke the medium-term downward trend, but was still unable to overcome the five-euro mark. It is a well-known fact that such price jumps are always an incentive for profit taking, so it remains to be seen whether the upward trend will continue unabated this week.
| (Average Quotes Exchange / OTC) | |||
| Instrument | 2017-05-19 | 2017-05-12 | Change |
| EUA (Spotmarket) | 4.85 EUR | 4.45 EUR | +0.40 EUR |
| EUA (December-2017-Future) | 4.85 EUR | 4.46 EUR | +0.39 EUR |
| CER (Spotmarket) | 0.24 EUR | 0.25 EUR | -0.01 EUR |
| ICE Brent Crude Oil (Benchmark Future) | 53.68 USD | 50.80 USD | +2.88 USD |
| EURO (Currency, Forex) | 1.1208 USD | 1.0934 USD | +0.0274 USD |
(The average exchange quotes and OTC-prices shows the average between bids and ask of several exchanges and OTC markets for carbon emission rights in the ETS. Bid and ask have usually in Spot Market a visible spread. CER CP1 and ERU are eligible in ETS until end of March 2015 and must be swapped into EUA. Crude Oil and Euro Currency shows day-end-exchange quotes. These market information has just an informational character and are no advice or offer to trade carbon emission rights or their futures and options. If you want to unsubscribe, please reply to this mail.)
Please call our international carbon desk if any further questions exist: +49.2831.1348220 or +44.20.79790283.
With kind regards,
Advantag Services GmbH