Interest rate futures pricing just a 20% chance of ECB 50 BP hike

Interest rate futures Futures Futures or a futures contract represents a legal agreement to buy or sell a security or asset at a predetermined price at a specified time in the future. Of note, the parties are not known to each other.These transactions usually involve commodities or other securities involving the buying and selling for a forward or predetermined price.Futures also adhere to a delivery date, which specifies the date of delivery and payment. Relative to other forms of investing futures are much more complex, as Futures or a futures contract represents a legal agreement to buy or sell a security or asset at a predetermined price at a specified time in the future. Of note, the parties are not known to each other.These transactions usually involve commodities or other securities involving the buying and selling for a forward or predetermined price.Futures also adhere to a delivery date, which specifies the date of delivery and payment. Relative to other forms of investing futures are much more complex, as Read this Term now pricing just a 20% chance of an ECB 50 basis point Basis point A basis point is a unit of measurement used to express the change in value of a financial instrument, such as a bond or a loan. One basis point is equal to 0.01%, or one one-hundredth of a percentage point. For example, if the interest rate on a bond increases from 5% to 5.25%, that is an increase of 25 basis points. It is often used in the context of interest rates, yield, and credit spreads. The short-hand for a basis point is bps and on a trading floor you will hear them referred to as ' A basis point is a unit of measurement used to express the change in value of a financial instrument, such as a bond or a loan. One basis point is equal to 0.01%, or one one-hundredth of a percentage point. For example, if the interest rate on a bond increases from 5% to 5.25%, that is an increase of 25 basis points. It is often used in the context of interest rates, yield, and credit spreads. The short-hand for a basis point is bps and on a trading floor you will hear them referred to as ' Read this Term hike tomorrow. The ECB rate decision will take place at 9:15 AM ET (adjusted for the daylight saving time change in the US this week).

The EURUSD has retreated towards the day's low (recently trading at 1.0520), now dipping below last week's low of 1.05236 and breaking through the swing area between 1.05236 and 1.05323. The currency pair is also distancing itself from its 100-day moving average at 1.05488 (blue step line in the chart above), which now serves as a risk-defining level for sellers. Remaining below this level suggests a more bearish outlook. However, a move back above could indicate disappointment due to the failed break attempt.

The next target area is near the swing area between 1.0480 and 1.04906 (see red numbered circles on the four-hour chart below).