Short Eurodollar Has Been "Painful"

HFA Padded
Mark Melin
Published on
Updated on

With Eurodollar prices hovering near the 99.74 level three months ago, when the CFTC Commitment of Traders report showed the Levered Money and Specs category, the speculative traders, as being significantly short, the market obliged the traders. That short position has recently turned to a new net spec long, a report from the Royal Bank of Scotland shows. Eurodollar prices, a measure of the value of U.S.-dollar denominated deposits in foreign banks, fell from a high trading range with 99.74 being a mean three months ago to bottoming out near 99.70, benefiting a short position. Then in January, as additional…

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HFA Padded

Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.