It has been a fairly volatile....>

US EURODLR FUTURES: It has been a fairly volatile week for US Eurodollar futures

with the strip looking set to end the week a few ticks lower than last week with

Whites (M9-H0) down 2-5.5 ticks and the rest of the strip down 5.5-7.5 ticks.

- Monday and Tuesday saw the strip range trade with economic data in line with

expectations as the market adjusted to the prior week's payrolls print.

- Wednesday's ECB meeting saw a rally in global STIR futures as Draghi's opening

statement included a reference to examining whether there needed to be

mitigation of the implications of negative rates on the banking sector. Although

Draghi did not explicitly use the words "tiered deposit rate" it was clear that

this was what he was referring to. Although some tiering discussion was

expected, to find it in the opening paragraph was a dovish surprise.

- Thursday saw some retracement off the highs through the European morning

session ahead of the release of PPI and jobless claims data which were both

better than expected. The Eurodollar strip took another leg lower in the Friday

European morning session as better than expected Chinese export and lending data

reduced some concerns about the Chinese and global economic slowdown.