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Maintaining Risk-On Shift Lower

US EURODLR FUTURES
  • Quiet session obviously with US Memorial Day but Eurodollars are holding onto the 6-6.5 tick move lower through the majority of the curve despite a slight rolling over in e-minis.
  • It sees EDZ2 unwind roughly half of the move higher on last week’s soft US data as the front-end of the curve re-steepens.
  • EDZ2 is close to where it has after May FOMC but with the main difference being a trimming in hike expectations thereafter, now levelling off close to 3.25% in EDH3-EDM3 compared to previous peaks above 3.5%.

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