🏦🇺🇸 Fed Pricing Supporting Equity Rally: Cable FX Macro

• The green and magenta lines in the superior panel show historical pricing for the S&P 500 Index and global equities, the white line below shows Fed rate moves priced by Fed funds futures

• We saw a sharp increase in Fed rate cuts during the last quarter of 2023, this coincided with a turn around in risk sentiment and led to consecutive weeks of gains in equities

• A model tracking Fed funds futures is now showing investors price in about 6 rate cuts for next year