December 30, 2020

–GBP is around 1.3580 this morning, pressing for a close at the high of the year.  It’s at the highest level since early 2018.  Last night I watched a classic James Bond movie, Goldfinger.  In the scene where Mr Goldfinger wants to extract an outrageous global ransom, the amount is given as “280 million dollars… one hundred million pounds”.  So GBP has to pull a bitcoin and double from here to get back to its value in 1964!  The dollar index appears to want to close out the year on its low, currently it’s 89.75.  Maybe 2.80 GBP isn’t all that farfetched as the US seeks to churn out another $2k direct deposit to the populace. March Euro made a new high this morning and is currently 1.2300.  

–Corn also rallied to the year’s high yesterday, closing at 466, a solid, continuous rally from the August low around 330.  Rates however, remain quite subdued.  TYH1 settled unch’d at 137-29+ with a cash yield of 93.3 as sevens were auctioned.   Red through gold eurodollars settled +0.5.  Volume was light.

–Opposite of corn, gold’s high of the year was made in early August, and it’s been a series of lower highs and lower lows since then as institutional money has been swayed by the siren call of bitcoin.  However, USD depreciation should keep a floor under it.  

Posted on December 30, 2020 at 5:10 am by alexmanzara · Permalink
In: Eurodollar Options

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