The highlight of the week for....>

US EURODLR FUTURES: The highlight of the week for US Eurodollar futures has

undoubtedly been the FOMC meeting. The bar had been high for the Fed to meet the

market's dovish expectations, but the Fed was up to the task. According to MNI

PINCH, markets are now fully pricing at least one 25bps cut in July with nearly

a 50/50 chance of a 50bps cut. The word "patient" was changed to "will act as

appropriate" with Bullard dissenting.

- The Eurodollar strip moved higher immediately on the release of the statement

and continued to move higher into the European open before reaching a peak

around the time of the US open on Thursday. Some of the move higher was retraced

just ahead of Thursday's close. Friday saw a less eventful trading day, with the

highlight of the European morning session the release of the European PMIs. The

North American morning session has seen Fed Vice Chair Clarida interviewed,

Bullard explain his dovish dissent and Kashkari calling for a 50bps cut, but

little market reaction to any of these comments.

- The U9 Eurodollar contract is 7.5 ticks higher this week with other Whites and

Reds (Z9-M1) 2-4.5 ticks higher. The rest of the curve is 2 ticks higher.