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Green Dec'24 Inversion Quickly Waning

US EURODLR FUTURES
Increasing inversion of EDZ4 (Green Dec) futures vs. levels out to EDM6 (Gold Jun) by as much as 0.035 over the last few weeks is quickly unwinding since the FOMC's hawkish pivot Wed (steady rate but 2x accelerated taper and up-shift in dot-plot: 3 hikes each in '22 and '23).
  • Inversion widely viewed as market pricing in policy mistake and/or shift back to dovish tone. Currently, EDZ4 at 98.325-.33 is invreted by 0.005 vs. EDH5-EDM5 then starts to steepen out: +0.030-0.070 vs. Golds (EDH6-EDZ6)

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