🏦📊BoE Hawkish Pricing Trimmed Last Week: Cable FX Macro
- Rosbel Durán
- Oct 23, 2022
- 1 min read
**As seen in Macro Walk report 10/21/22, subscribe at cablefxm.co.uk/reports
This week, the docket sees the BoC, ECB, and BoJ
In terms of pricing, overnight index swaps built hawkish bets and penciled the Fed peak rate at about 5.0% last week, pricing has stepped back marginally
The USD March-Dec 2024 calendar spread ticks at about -20bps
GBP hawkish pricing has been paired last week, markets now see about 20bps less of tightening from the BoE in November when compared to the prior week. The reduction is seen at about the same magnitude across tenors
When comparing money market curves, we still see the BoE priced in to deliver further than the Fed. The curve sees an implied rate above 5.50% by June next year.
Comments