🏦📊Fed-ECB Spread Remains Positive Into Mid-2025: Cable FX Macro
- Rosbel Durán
- Mar 4
- 1 min read
**As seen in Online Tools > IRP, get access now! cablefxm.co.uk
Recent weak economic data from the U.S. has pushed traders into pricing a larger probability of rate cuts from the Federal Reserve this year. Also, recent geopolitical risks sparked a 50% chance of a Fed rate cut in May (see IRP tool)
Despite the rise in Fed rate cut odds, the spread between Fed and ECB implied policy rates remains in favour of the greenback. The differential is above 30bps into the next five meetings.
Ahead, labour data from the U.S. and further details on German coalition would bring colour to market pricing
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