LNG: NWE LNG Prices Trend Closer to TTF as Market Shies from Europe: Platts
European LNG-TTF spreads have trended closer to pipeline gas hub levels as the market shies away from supplying cargoes to Europe and faces competition from Asia, Platts said.
- The DES NWE LNG price for August was assessed at a 2.5 cents/MMBtu discount to TTF, Platts said August 25.
- These are the narrowest discounts seen since August 2023 when LNG in NWE was flat to TTF.
- The narrow LNG-TTF spread has dampened buying interest across the continent, as it lowers the profitability for buyers of LNG who then sell at the gas hub price in Europe.
- European LNG imports stand at 6.12m mt so far in June, Platts said. This is around 77% of May’s levels, which was the lowest since Sep. 2023.
Source: S&P Global Commodity Insights
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JGB TECHS: (M4) Just Above Key Support
- RES 3: 148.74 - High Jul 24
- RES 2: 147.74 - High Jan 15 and bull trigger
- RES 1: 145.95 - High Mar 25 1
- PRICE: 143.64 @ 16:17 BST May 24
- SUP 1: 143.47 - Low May 22
- SUP 2: 143.44 - Low Oct 31 (cont) and the bear trigger
- SUP 3: 141.65 - 1.00 proj of Mar 22 - Nov 1 ‘23 - Jan 15 price swing
A bear trend in JGB futures persists, erasing the corrective bounce in recent weeks. The contract for now is trading just above key support and bear trigger at 143.44, the Nov 1 low. A stronger reversal higher is required to signal the end of the recent downward phase. Key resistance is at 145.95, the Mar 28 high. A break would signal scope for a climb towards the bull trigger at 147.74, the mid-January high.
USDCAD TECHS: Continues To Find Support
- RES 4: 1.3977 High Oct 13 ‘23 and a key M/T resistance
- RES 3: 1.3899 High Nov 1 and a key resistance
- RES 2: 1.3846/55 High Apr 16 and the bull trigger / High Nov 10 2023
- RES 1: 1.3748/85 61.8% of the Apr 16 - Mar 16 bear leg / High Apr 30
- PRICE: 1.3733 @ 16:53 BST May 24
- SUP 1: 1.3669/1.3590 20-day EMA / Low May 16 and the bear trigger
- SUP 2: 1.3547 Low Apr 9
- SUP 3: 1.3512 50.0% retracement of the Dec 27 - Apr 16 bull cycle
- SUP 4: 1.3478 Low Apr 4
USDCAD erased the Thursday gains into the close, however the bullish trend condition remains intact above the 1.669 20-day EMA and 1.3590 bull trigger. Recently, key supports at 1.3642, the 50-day EMA, and 1.3610, the May 3 low, have been pierced. But a clear break of both levels is needed to threaten the bullish theme and instead signal scope for a deeper retracement. For bulls, a stronger resumption of gains would refocus attention on the bull trigger at 1.3846, the Apr 16 high.
AUDUSD TECHS: Corrective Pullback Extends
- RES 4: 0.6771 High Jan 3
- RES 3: 0.6751 76.4% retracement of the Dec 28 - Apr 19 bear leg
- RES 2: 0.6729 High Jan 12
- RES 1: 0.6714 High May 16 and the bull trigger
- PRICE: 0.6626 @ 16:50 BST May 24
- SUP 1: 0.6592 Low May 24
- SUP 2: 0.6576 50-day EMA
- SUP 3: 0.6465/6407 Low May 1 / Low Apr 22
- SUP 4: 0.6363 Low Apr 19 and the bear trigger
AUDUSD traded lower this week. The latest pullback appears to be a correction and a bullish condition remains intact following recent gains. The pair has recently breached a key short-term hurdle at 0.6668, the Mar 8 high. The break strengthens a bullish theme and a resumption of gains would open 0.6751, a Fibonacci retracement. On the downside, support to watch lies at 0.6576, the 50-day EMA.
