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🏦📊 Market Starts Pricing First Fed Rate Cut By May: Cable FX Macro

Writer's picture: Rosbel DuránRosbel Durán

**As seen in Macro Walk report 07/28/23, subscribe at cablefxm.co.uk/reports


  • We recently heard from the FOMC as it raised its policy rate by 25bps on Wednesday to 5.25%-5.50%. We compiled a desk commentary rundown of the event here

  • As of last week, the market is now pricing the first Fed rate cut to take place by May, while swaps price in no changes for the rest of the year, this means that we have reached peak rates

  • We also heard from the ECB, swaps market imply a 30% of a rate hike by October while the first rate cut is not expected until July next year

  • You can track ON index swaps in the market implied rates section in our weekly Macro Walk report


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