According to sources, European Union Allowances (EUAs) are expected to reach higher levels in the upcoming week, with traders seemingly disregarding recent bearish fundamental news. Although carbon prices briefly reached a near-one-year high above EUR 28/t earlier in the week, they subsequently dipped back to around EUR 27/t. Nevertheless, the prevailing trend indicates that prices are likely to continue their upward trajectory.
Consistent Upward Price Trend:
Multiple sources affirm that the upward price trend for EUAs remains intact and shows no signs of deceleration. Despite occasional attempts for prices to retreat in June, as well as during this week, any potential pullbacks have been swiftly suppressed. Tom Lord of Redshaw Advisors notes that while new price highs may not be achieved presently, there are no definitive indications that the gains have ceased.
Continued Market Momentum:
Traders and experts observe that the market for EUAs has exhibited persistent strength and resilience. Despite bearish news and attempts at price correction, the momentum for EUAs remains intact. The absence of concrete signs signalling the conclusion of price gains suggests that market participants continue to view EUAs as valuable and promising investment.
Despite recent bearish fundamental news, EUAs are anticipated to push towards higher levels in the forthcoming week. Traders appear to dismiss these bearish factors, as the market trend for EUAs maintains its upward trajectory. Although prices temporarily retreated from a near-one-year high, they remain resilient and display ongoing strength. The market’s resilience and the absence of definitive indications of the end of price gains suggest that EUAs continue to attract attention and hold potential for further advancement.