What does it mean?
The eurodollar curve has fully priced in an FOMC interest rate hike in December 2022.
That’s in stark contrast to Fed forecasts and messaging so one side has to be wrong. Normally that would be the Fed but maybe the rules of the game have changed.

Forex news for New York trade on March 5, 2021:
Markets:
– US 10-year yields down 4 bps to 1.55%
– Gold up $1 to $1698
– WTI crude up $2.44 to $66.27
– S&P 500 up 73 points to 3841
Non-farm payrolls delivered yet another whipsaw to short-term traders. It’s clear that the playbook going in was to sell risk,

Major indices close near highs for the day
The major indices are all closing higher and near their session highs after earlier falls were erased.

Weekly forex futures positioning data for the CFTC for the week ending Tuesday, March 2, 2021
Highlights:

Comments from the Atlanta Fed President:
There’s no hint of doing anything differently.

US consumer credit outstanding for January 2021
It’s rare to see credit tighten but revolving credit (which is credit cards) likely fell as people used stimulus payments to pay off credit card bills.

S&P 500 futures up 0.3%
US futures have had a bit of a choppy session in European morning trade but are creeping higher now as we move towards North American trading.

Japan prime minister, Yoshihide Suga, makes the announcement official
This just confirms reports from earlier in the week, as Tokyo’s state of emergency is now extended to 21 March. The virus situation in Japan has gotten much better in recent weeks and hasn’t been much of a factor to the economy as of late as such.

GBP/USD falls to 1.3800 for the first time since 12 February
The pound lost ground and cable fell back under 1.4000 and has struggled to get back above that this week, before extending its decline in the past few sessions.

Equities stay on the defensive even as bonds are seen calmer so far today
Dip buyers were a little interested at the tail-end of Asian trading but the mood has turned since with S&P 500 futures seen down 0.4%, Nasdaq futures down 0.6%, Dow futures down 0.4%, and Russell 2000 futures down 0.8% currently.