Week 11: EUAs slip on financial market uncertainty, weak auctions

The EUA front-Dec contract softened under broader financial market uncertainty in this week. For the week ahead, uncertainty is likely to continue, with eyes on the upcoming US Federal Reserve interest rate decision, on 22 March. On a fundamental level, mild, windy forecasts are set to ease demand for emissions-heavy power generation, providing downwards pressure on carbon. Policy is neutral for the week to come. Technical signals are bearish, with key resistance at €91.45/t and support at €85.40/t. Overall, we have a bearish view for the EUA Dec-23 contract for the week ahead.