**As seen in Macro Walk report 01/30/2022, subscribe at cablefxm.co.uk/reports
Overnight index swap curves saw a broad increase in rate hike bets, except the yen and euro curves. The number of hikes / cuts went up by almost one hike for the Fed's March meeting, the CAD curve saw +0.50 moves for the rest of the year, both Fed and BoC decided on monetary policy last week
As of last week close, the CAD curve continues to be the second most aggressive in terms of tightening, just after the NZD. The BoC is seen delivering 5&1/2 rate hikes this year and the chance of a rate hike stands above 100% for both March and April meetings
Ahead, we will be hearing from the BoE and the ECB. The former will gather more than usual attention, as the bank is expected to raise interest rates for a second consecutive time. There is 80% chance the BoE hikes by 25bps on Thursday, while the OIS curve prices 4&1/2 rate increases by year-end. This means all meetings are 'live' and the market sees above 60% chance of hikes in every single one of them until September
In the EUR front, the ECB is not expected to move until October, with a 70% chance of a hike. The eurozone economy is currently lagging the U.S., policymakers are likely to push expectations lower on Thursday. In other news, 10-year bund yield holds positive ground on Tuesday session.
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