🏦📊 Markets Trimmed ECB Rate Hike Bets: Cable FX Macro
- Rosbel Durán
- Mar 14, 2023
- 1 min read
**As seen in Macro Walk report 03/11/23, subscribe at cablefxm.co.uk/reports
We're set to hear from the ECB this week, and recent volatility has taken a toll into central bank pricing. O/N index swaps now price about 130 basis points of additional policy tightening, this is circa 20bps less than the week prior
Also, if money markets were not challenged here, this would prove wrong to desks forecasting ECB peak rates beyond 4.0%. By the end of 2023, BofA and Barclays see rates at 4.5%, Nomura expects 4.75%, UBS forecasts a 4.25%
On the other side of the Atlantic, O/N swaps have built rate cut bets heading into February CPI data. Peak rates now are seen below 5.0%. Markets now imply about 30bps of cuts by year-end
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