What is the relationship between EURODollar futures on the CBOT and the EuroFX future

Discussion in 'Financial Futures' started by fluttrader, Feb 21, 2008.

  1. Can anybody explain ?
  2. Eurodollar is an interest rate/bond instrument, EUROFx is a currency (exchange rate) instrument.
  3. Not much , one is an int rate derivate the other is a currency future
  4. MTE


    By the way, Eurodollar futs are on the Merc not Board of Trade.
  5. FredBloggs

    FredBloggs Guest

    the relationship (you asked 'relationship' over 'difference') is that interest rates often influence the fundamentals of the fx contract. eg in terms of carry trades.

    therefore, perhaps you will also want to consider looking at euribor futures (euro equiv of usd eurodollar stir) on liffe as well as eurodollars - perhaps the spread against same maturities to understand the carry bias?
  6. totally different
  7. What is the correlation between the 2 ?
  8. MTE


    There is no direct correlation between the two, except for the cost of carry (the spread between the interest rates of the respective currencies) imbedded in the currency futures.