💵🔺Dollar Tracks Rates, Ignores Vol: Cable FX Macro

• A Cable FX Macro Index that follows USD short-term rate spreads vs G10 peers has now risen to the highest in a month, meaning that USD yields outperform peers

• The Cable FX Macro Dollar Index is rising on the development and is now at the highest since mid-November. Cable FX Macro dollar index is set to post its third consecutive week of gains

• Meanwhile, a Bloomberg measure of dollar implied volatility continues to fall. 1-mo dollar vols now tick below 9.5%, vols have been subdued for most of the year. The outcome is a divergence from last year as the dollar was mostly led by developments in vol