🏦🔻 Fed Tightening Bets Trimmed Into Tuesday: Cable FX Macro

• The implied rate priced via overnight index swaps dipped today to lows close to 4.0% for the December 2023 tenor, rates expectations had priced in a little above 4.3% by Friday market close

• A reduction across the swaps curve has been taking place since Monday. We have not seen tier-1 data outside the ISM manufacturing PMI, which posted a slowdown and an ease in the prices index

• This week is gearing up for a labour market report to gauge the state of the economy and if the data should feed into any potential adjustments in the Fed's tightening path