🏦📊 Markets Price In 135Bps Of Additional Fed Tightening For 2022: Cable FX Macro

**As seen in Macro Walk report 10/28/22, subscribe at cablefxm.co.uk/reports

• Implied interest rates by the overnight index swaps moved marginally this week, Fed hawkish bets were built as futures move closer to a 5.0% peak rate for this cycle, the last read on the May 2023 tenor stood 10bps below the mark.

• As we head to the FOMC meeting, markets are fully priced for a 75bps rate hike and see a move of about the same magnitude for December as they see an additional 135bps of tightening for the rest of the year

• We will also hear from the BoE this week, hawkish bets were trimmed sharply last week, the implied rate for the March 2023 tenor is now at 4.5%, this is about 50bps lower than where it was the prior week. Markets still expect the bank to deliver about 225bps of additional tightening by March, this is however 80bps less relative to the prior week