⚖️🔺Dollar Rate Differentials Rise to Near YTD Highs: Cable FX Macro

• Our own measure of dollar interest rate differentials, the Cable FX Macro USD Spreads Index <.RDDXYIR>, is rising and close to matching the YTD highs of 138.78

• The index peaked preceding the March banking crisis and trended lower to bottom in early May. We have seen the dollar trade detached from the index over much of Q2, but its relationship has strengthened in recent months

• A rise in favour of dollar front-end rates vs G10 peers comes ahead of Jackson Hole Fed Chair Powell's remarks