The week for Eurodollar..........>

US EURODLR FUTURES: The week for Eurodollar futures has been dominated by two

key events - the FOMC meeting and the labour market report.

- The Eurodollar futures strip drifted slowly higher at the beginning of the

week as market participants were cautious ahead of the FOMC meeting. The

statement was expected to be somewhat dovish given a number of moderate speeches

by Fed officials throughout January. However, in the event, the downgrade of the

language was greater than many had expected and the Fed seemed to be closer to

adjusting the runoff policy for the balance sheet than many had anticipated.

This saw the Eurodollar futures strip shift higher, with moves higher continued

into Thursday.

- However, a much better than expected payrolls report on Friday saw the

Eurodollar strip reverse course and sell-off.

- Looking at the week as a whole, the biggest moves have been seen around the

U9-U0 area. The White area of the curve has flattened substantially with the H9

contract up 2 ticks but Z9 contract up 10 ticks on the week. Reds are 8.5-11

ticks higher, Greens 8-8.5 ticks higher and Blues 6.5-7.5 ticks higher.