Euro Markets: Heavy early selling triggers €2 drop, followed by steady recovery as EUAs remain rangebound

EU carbon allowances rallied after an initial sharp decline at the start of the week as a cocktail of gloomy macroeconomic news, a falling euro, and improving wind generation combined with Friday's technical breach to trigger a wave of selling that pushed EUA prices more than €2 lower at one point in the morning, before steady buying wiped out nearly all the losses and left carbon in the middle of its recent range.