🏦📊ECB Priced In to Deliver More Easing Than Peers: Cable FX Macro
- Rosbel Durán
- Jun 1
- 1 min read
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The Fed is expected to deliver 2 more rate cuts this year, this would leave the policy rate at 3.75%, our interest probability shows.
This week we have the ECB and BoC deciding on policy. The upper left chart shows implied policy differentials over the meetings ahead. The ECB is expected to lower policy, however, pricing over the next year leaves the central bank easing more than most of its peers.
It will be interesting to hear from the BoC as pricing is shifting as we speak. Markets never took a full rate cut at face value for the June meeting, pricing reached 16bps of easing on this tenor. However, it is now flat after better than expected Canada output data.
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