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Strategies & Market Trends : Currencies and the Global Capital Markets -- Ignore unavailable to you. Want to Upgrade?

To: Robert Douglas who wrote (2641)	12/21/2000 11:25:32 AM
From: Henry Volquardsen	Read Replies (6) \| Respond to of 3536

Robert, the futures curve, in my opinion, is forecasting more than 85 b.p. by June. A non-forecasting market should have a positively shaped curve, mostly for time premium. So if 3 month is 6.50% it would not be out of line for 6 month to be 6.625% and the year to be 6.75%. With that kind of curve the implied euro rate for the June contract of @6.72% or a eurodollars price of 93.28. So a price of 94.35 is forecasting, imo, over 100 b.p. by June. Henry