⚖️💵Dollar Trades In Line With Rate Spreads: Cable FX Macro

• The chart below shows our measure of the dollar and front-end interest rate spreads (USD rates vs G10). Both increasing on the session as 2-year yields rise 2.1bps

• It is interesting, to see a lack of follow through in USD strength during the EU session (EU countries flash CPI releases). However, Treasuries did react to an upward revision of 2Q GDP, sending yields higher and the dollar with it