⚖️💱Currency Rates Were Sensible to Nominal Yields On The Week: Cable FX Macro

**As seen in FX Quotes report 08/25/23, subscribe at cablefxm.co.uk/reports

• We recently posted on dollar trading heavy vs peers as it followed front-end yields. We will now be looking at a weekly currency/yield performance from a G10FX perspective

• For starters, a regression of yields and FX spot moves is ticking above 0.5 R^2 for last week, this means that the yield rate variable was responsible for a good share of currency moves

• U.S. 5-year nominal yield jumped by 5.3bps on the week, this coincided with a rise of 0.23% in an alternate measure of the dollar vs a broader basket of currencies. A 17.4bps drop was seen in 5-year Gilt yields, sterling fell the most in the group at 1.23%