MARKET ANALYSIS: Not Enough Focus on...>

STIR FUTURES: MARKET ANALYSIS: Not Enough Focus on European Growth Relative to

US Risks

Over the past week, we have seen both Euribor and Eurodollar futures curves move

higher, with the Eurodollar curve in particular moving higher on the back of Fed

Chair Powell's speech yesterday. These comments were in line with the MNI

Exclusive: Fed Could Pause Rate Hikes as Early as Spring (see mainwire Nov 21 at

11:22GMT).

- With data deteriorating in the Eurozone too, our policy team cited sources

last week that the ECB's "broadly balanced" risk assessment could be under

pressure at the December meeting (see MNI SOURCES: Pressure On "Balanced Risks"

As Data Weighs On ECB, mainwire Nov 23, 13:14GMT).

- We don't think that the Euribor curve is reflecting this enough at present.

- We think the H9-H0 spread between Eurodollar and Euribor will widen.

For full analysis see: https://tinyurl.com/MNI-EDER-Nov29