Ahead of the weekend, the European carbon market continued its upward momentum for the second straight session. The EUA Dec’25 ended up rising to €64,82, posting a 4,35% daily increase, the largest so far this year.

Carbon analyst Yan Qin noted that EUAs are “finding support from investors moving into euro-denominated assets as the dollar weakens.” Qin also highlighted that the UK carbon price jumped by 7.5% on Friday, probably for the same reason.

The euro is the surprise beneficiary of the recent market turmoil triggered by the constantly changing US trading policies, eroding the dollar’s status as “safe haven”. On Thursday, Trump’s decision to pause many of his tariffs led to the biggest daily rise for the EU’s currency which extended its gains on Friday before closing at its three year-high. 

The rise of the euro started in fact at the end of February. However, the pace of appreciation has accelerated since April 1 and the common currency has now gained more than 5% on the dollar so far this month, leading to its fastest rally in a decade and a half.

The recent volatility and uncertainty regarding Trump’s trade policies, has pushed many investors to reduce their exposure to the US markets. “Driving the currency’s move is global investors’ growing nervousness about owning U.S. assets, causing them to sell and move money back home. In Europe, the flows are boosting the euro,” explained Reuters.