Euro$ Futures
Euro$ interest rate futures have extended a bullish streak heading into tomorrow’s payrolls report; which now contains firmer than expected ADP reading, a weak Monster.com index (seasonal) and a very weak jobless claims reading (special factors) for guidance. The Dec-09 contract jumped to highs of 97.06 this morning before paring those gains back to 97.025 (up 5-ticks), still well up from lows near 96.69 last week. Early option activity included a large bullish 15k bid for “call butterflies” on Sep-08s, among other trades — the same European bank bought 15k yesterday. Technical risk is building for a pullback now to 96.85 (especially on a better than -60k payrolls print Friday), before turning higher again to challenge 97.095.