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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
by mise_en_place 5y ago
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?
- JackFr 5y agoYes, in a nutshell.
- lotaezenwa 5y agoYes, 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.