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Technical analysis: Euribor Futures

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Euribor – December 2009

Thu, Aug 6 2009, 08:31 GMT
by Nicole Elliott

Mizuho Corporate Bank  |  View company's profile


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Comment: The German Treasury yield curve flattened as expected, the 30/2-year spread narrowing 35 basis points as 30-year yields drop 25 basis points and then 2-year rallies by 25. This Euribor contract inched up to a new record high at 99.105, at which point it was dragged down by Eurodollar and Short Sterling contracts, precisely what we had warned about. The process is not over yet and might gather momentum, so that a slide to the bottom of the channel must be allowed for.

Strategy: Possibly attempt small longs at 98.95, adding to 98.855; stop well below 98.750. Upside target 99.000/99.065 medium term.


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