🏦📊 Market Is Pricing +25Bps Of Fed Rate Cuts By Summer 2023: Cable FX Macro

• The spread between December 2022 and 2023 euro dollar contracts show market pricing rate cuts by next summer. EDU2EDH3 ended the week at -0.370, that was a fall of 26bps, this implies that the market is now expecting more than one standard 25bps rate hike by June 2023. The spread between the December contracts, EDZ2EDZ3, ended the week at -0.75, in other words, markets now price in a total of 75bps of Fed rate cuts for next year.