NATGAS: Germany Abolishes Gas Levy On Its Borders
The German lower house of parliament on Friday passed a law that includes a waiver of the German gas storage levy on border points and virtual trading hubs, it said, cited by Reuters, making its only payable for domestic gas buyers by system operator THE.
- The gas storage neutrality charge from January 2025 is set at 2.99 EUR/MWh, up by 20% from before, Trading Hub said via a press release.
- Germany had previously notified international partners that it plans to abolish the fee for its neighbouring countries. The Czech Republic has said this week it had assurance the controversial Germany gas levy will still be abolished this week or early January.
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FOREX: FX OPTION EXPIRY
Of note:
EURUSD 1.42bn at 1.0550/1.0585.
EURUSD 1.47bn at 1.0600 (thu)
AUDUSD 2bn at 0.6450 (thu).
EURUSD 1.24bn at 1.0600 (fri).
- EURUSD: 1.0500 (825mln), 1.0525 (280mln), 1.0530 (397mln), 1.0540 (729mln), 1.0550 (652mln), 1.0585 (765mln), 1.0620(738mln).
- USDJPY: 155.00 (878mln), 156.00 (978mln).
- USDCAD: 1.4000 (616mln).
- AUDUSD: 0.6455 (403mln).
- USDCNY: 7.2600 (489mln).
- USDZAR: 18.0400 (438mln).
EUROZONE DATA: One-off German Deals Expected To Skew Q3 Negotiated Wages Higher
Euro-area Q3 negotiated wage growth, due at 1000GMT/1100CET, is expected to print between 5-6% Y/Y according to a handful of analyst estimates we have seen. This would be a marked uptick from the 3.5% Y/Y in Q2, but is largely due to one-off effects in Germany (German Q3 negotiated wages rose 8.8% Y/Y, and 5.6% Y/Y excluding one-off payments).
- Negotiated wage growth is expected to fall back in Q4 (Citi expect 3.75% Y/Y), not least due to last week’s IG Metall Union and Gesamtmetall pay deal in Germany. Analysts have generally viewed the deal as weaker than would have been expected by the ECB.
- Although negotiated wages were a key focus for the ECB earlier this year (amid concerns around persistent services inflation pressures) focus has shifted towards the weakening growth outlook in recent months.
- As such, the ECB can probably afford to look through the uptick in Q3 negotiated wages, placing more focus on Friday’s November flash PMIs as a timely indicator of economic activity.
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