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ECB and Philly Fed drive ED/ER spread - and EURUSD

STIR FUTURES
  • Huge divergence between Euribor and Eurodollar futures at the moment. This is also helping to push EURUSD higher.
  • Euribor futures up to 15.5 ticks lower at writing following the 50bp ECB hike (markets had been fully pricing 25bp with around a 35% probability of a 50bp hike). Lagarde's press conference continues.
  • Eurodollar futures initially moved lower, dragged by Euribor futures, but then moved higher again after the disappointing Philly Fed survey. Some Red up to 3 ticks higher.
  • SONIA futures lower on the day - dragged by Euribor futures, but with smaller moves.

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