Re:What is the Eurodollar System? (2020) [pdf]
by mise_en_place on Sunday April 10, 2022 @03:48AM
(#30975188)
Interestingly, there is a Eurodollar future provided by CME. It is currently quoted at 96.765, meaning a deposit rate of 3.235%. Does that mean that the global market for dollars has already priced in Fed rate hikes?
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Re:What is the Eurodollar System? (2020) [pdf]
by lotaezenwa on Sunday April 10, 2022 @09:10PM
(#30983449)
Yes, and this eurodollar futures price (and related options contracts) is used to derive, mathematically, the "percent chance of a rate hike" that you see around the fed meetings.