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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
EURUSD
- On Friday we saw the Eurodollar strip outperform the Euribor strip (i.e. the market removed more Fed expected Fed hikes from a 2 year horizon than ECB hikes). This helped support EURUSD in a period of risk aversion (that traditionally would be associated with USD strength).
- This morning we are seeing the reverse, the Euribor strip is largely stationary but the Eurodollar strip has moved lower (adding back some expectations of Fed hikes) - see 8:26 Bullet. This is driving EURUSD lower again.
- The correlation between the spread of the ER-ED Dec-23 contracts against EURUSD has been very strong recently and continues to hold strong.
- At present every 6.5 tick move in the ER-ED spread, roughly equates to one big figure for EURUSD (see chart below).
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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