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Natixis Recommend Going Short ERH4

EURIBOR

Natixis write “despite the overall dovish tone of the ECB’s latest decision, we think the market remains ahead of itself when it comes to the pricing of rate cuts in the first half of 2024.”

  • “We are willing to test investors’ stubbornness via short Mar24 Euribor futures, as we think market pricing should reflect unambiguous ECB communication, while we look for the first rate cut to come only in June.”
  • “We go short at 96.355 and target 96.10 (i.e. an implied forward Euribor rate of 3.90%) on a 2-month horizon. A stop loss is set at 96.48.”
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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