Jan 8. Brief note; most markets have modest rebounds from recent trends, though NOT the Euro

From Fed minutes: Fed officials saw rate rise before April as unlikely.  Not much market movement after minutes were released.  Later, from Chicago’s Evans:

though he also said this year’s growth could be 2.6% and he’s optimistic on the economy.

–This morning euro is at a new low under 118.  Bloomberg has a piece citing ING as the most accurate FX forecaster, looking for parity.

–Yesterday the eurodollar curve steepened slightly, with reds (2nd year) modestly outperforming to the upside.  Reds +2.125, Golds (5th yr) unch.  Apparently, new corporate issuance was a weight on the back end of the curve.  Ten year yield finished unchanged.  Somewhat interesting that even as the back end of the dollar curve has dramatically flattened, the absolute tick value of blue midcurve atm straddles has moved up to parity with greens.  Green straddles had been slightly greater in value as that part of the curve had been considered “in play” with respect to Fed tightening.

–Today’s news includes Jobless Claims expected 290k and tomorrow’s Payrolls expected 250k with rate of 5.7.

Posted on January 8, 2015 at 5:12 am by alexmanzara · Permalink
In: Eurodollar Options

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