EMISSIONS: EUA Auction Calendar Week Ahead (Calendar Week 43)

Industrial production and capacity utilization data pointed to a continuation of a tepid trend in August, with activity moderating since a push higher at the turn of the year. 

• Industrial production was stronger than expected in August at 0.1% M/M (cons -0.1) but with a net downward revision of -0.16pps offsetting most of this positive surprise. The revision was concentrated in July with -0.4% M/M vs the originally reported -0.1%.
• Manufacturing production was on balance stronger than expected however, with a clear beat in August at 0.2% M/M (cons -0.2) after a net downward revision of -0.15pps also mainly in July.
• Utilities continue to play a volatile role, slipping -2.0% M/M in Aug for the heaviest decline since March after a net upward revision of 0.28pps.
• In trend terms, IP growth eased back four tenths to 0.9% Y/Y although sees slightly stronger recent momentum with 1.5% annualized on a 3m/3m basis. Manufacturing production also eased four tenths to 0.9% Y/Y with the same 0.9% annualized run rate.
• Capacity utilization meanwhile is pointing to a clearer recent moderation, at 77.4% for a second month running after a downward revision to its lowest since January. It peaked this year at 77.9% in Feb and was still at 77.8% in June. 

• The Dollar unwinds all of the post retail sales gains, and similar reversals in US Treasury futures, moving off their lows
• The Immediate focus is right back in the EURUSD and the resistance right here at 1.1829.
• We have also highlighted the EURJPY earlier today and the 2025 high situated at 173.97.
• The SEK, CHF, GBP, AUD, NZD are now all testing fresh high versus the USD.

SPX: 6,636.0 (+0.3%); DJIA: 45,904 (+0.0%/+20pts); NDX: 24,395.0 (+0.4%).