Euribor – June 2010

Nicole Elliott from Mizuho Corporate Bank at 01/28/10

Comment: Struggling a little ahead of our first upside target at 99.150, prices dipping below the 9-day moving average for the first time since the beginning of January. The cash market is going nowhere fast. Once again this is seen as a futures buying opportunity for an eventual move to new record highs around 99.300/99.350 (contract highs for Dec09 and Mar10). Perhaps the front December contract has the greater upside potential.

Strategy: Buy at 99.040/99.000; stop below 98.950. Next target 99.125/99.150, then 99.225/99.300.