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The Fed Has Lost The Market - Traders Abandon 'Hype' Of More Rate Hikes

Eurodollar options traders are abandoning positions targeting another Fed rate increase this year, as the market-implied probability of a quarter-point hike in December plunges below 25 percent. The latest Chicago Mercantile Exchange data, for trading on Thursday, show a sharp drop in open interest for options that are a pillar of a December 2017 eurodollar put-fly position, a trade that hinges on the market pricing in a hike that month.
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