US-China trade talks have been...>

US EURODLR FUTURES: US-China trade talks have been the theme of the week.

Against this backdrop the Eurodollar strip looks set to end the week with most

contracts 11-15 ticks higher with a significant flattening of the curve through

the front four contracts.

- This has put the the strip towards the top end of the range of the past five

weeks or so but still some way off the highs seen at the peak of the rally in

the week following the March FOMC meeting.

- Eurodollar futures have been fairly unresponsive to US data releases this week

with PPI, CPI and wholesale inventory data all softer than expected and trade

balance data and claims largely in line with consensus.

- Despite having moved around somewhat on US-China Fed headlines over the past

week, the confirmation that the US would in fact raise tariffs on Chinese

imports saw little immediate market reaction.

- Whites (M9-H0) are 4-13 ticks higher on the week, Reds (M0-H1) 14-15 ticks

higher, Greens (M1-H2) 11-13 ticks higher and Blues 11 ticks higher.