Technical analysis: EuroDollar Futures
0
0
Eurodollar Future – Dec 2008
Fri, Oct 3 2008, 08:20 GMT
by Nicole Elliott
Comment: Two-year Treasury Notes are the new ‘safe haven’ as money market turmoil distorts shorter dated TBills. Therefore the yield curve has steeped significantly this week although the scramble into the long-bond (which yields a hefty 4.15%) continues. Front month Eurodollar futures are almost as inverted against any other contract month as the record of 1989, and Euribor futures spreads over Eurodollar ones continue to narrow. Three-month Libor is indicated at 4.35% this morning, three-month TBills 0.60%, making the Ted Spread an eye-watering 375 basis points. Even though overnight dollars can be picked up at a meagre 0.50% (by the right names), this has not eased year-end pressures. The ECB has room to cut rates, and Euribor futures can rally, but were the Fed to do so Libor through the end of this year is another story. Therefore we see this Dec08 contract capped at 97.000, moving back down to 96.300. Should this contract break below 96.200 true panic should set in and the first target would be 96.080/96.000. After that, 95.500.
Strategy: Attempt small shorts at 96.700, adding to 96.900; stop above 97.200. Add to shorts on a daily close below 96.250 for levels as above.
Published on Fri, Oct 3 2008, 08:23 GMT
Archive
- Eurodollar Future – September 2009
Published On Fri, Jul 3 2009, 08:32 GMT - Eurodollar Future – September 2009
Published On Fri, Jun 26 2009, 08:22 GMT - Eurodollar Future – September 2009
Published On Fri, Jun 19 2009, 07:59 GMT - Eurodollar Future – September 2009
Published On Fri, Jun 12 2009, 08:14 GMT - Eurodollar Future – September 2009
Published On Fri, Jun 5 2009, 08:30 GMT
Mizuho Corporate Bank
| 1-3-3, Marunouchi, Chiyoda-ku, Tokyo 100-8210
http://www.mizuho-cb.co.uk | Nicole.Elliot@mhcb.co.uk
Legal disclaimer and risk disclosure
The information contained in this page is based on or derived from information generally available to the public from sources believed to be reliable. No representation or warranty is made or implied that it is accurate or complete. Any opinions expressed in this paper are subject to change without notice. This page has been prepared solely for information purposes and if so decided, for private circulation and does not constitute any solicitation to buy or sell any instrument, or to engage in any trading strategy.Related reports
The Bond Bulletin - Treasuries extend rally, long bond 120? by DeCarley Trading
Thu, Jul 2 2009, 20:53 GMT
The Bond Bulletin - Treasuries mixed ahead of data and holiday by DeCarley Trading
Thu, Jul 2 2009, 00:56 GMT
The Energy Report - Treasuries For Sale Or Rent by Alaron
Mon, Jun 22 2009, 05:59 GMT
Bank Recomendations - A reversal seems to be taking shape, especially in U.S. Treasuries by Finotec Group Inc.
Tue, Jun 16 2009, 06:13 GMT
European Market Update - USD sentiment recovers as Japan stands by its US Treasury investment by TradeTheNews.com
Fri, Jun 12 2009, 12:39 GMT
Related content
Midday Market Recap: Stocks Flat, Canadian Dollar Higher, Treasuries Down
CEP News | Fri, Apr 3 2009, 17:05 GMT
Midday Market Recap: Stocks Higher, Canadian Dollar Down, Treasuries Flat
CEP News | Wed, Apr 1 2009, 17:00 GMT
Wall Street rally continues on Treasuries plan, EUR and GBP rising
FXstreet.com | Mon, Mar 23 2009, 17:39 GMT
Midday Market Recap: Dow Down 50 Points, Yen Falling, Treasuries Down
CEP News | Fri, Feb 13 2009, 18:10 GMT
TREASURIES-Bonds pare losses as consumer mood slumps
Thomson Financial News | Fri, Feb 13 2009, 15:18 GMT
Interested in forex trading? forex brokerage firms!
GET CASH BACK FOR YOUR TRADES! Learn more about the Pip Rebate Program
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. FXstreet.com has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.
Any opinions, news, research, analyses, prices or other information contained on this website, by FXstreet.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXstreet.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
©2009 "FXstreet.com. The Forex Market" All Rights Reserved.