🏦🇺🇸Rate Cuts No Longer Priced In For 2023: Cable FX Macro

• Overnight index swaps saw hawkish bets building higher after the FOMC presser, the curve stepped up the Fed's terminal rate as expectations are now set for rate hikes beyond February

• The overnight index swap May 2023 tenor is now closer to 5.2%, this is almost 30bps higher from where it was on Friday last week and 20bps higher from October close

• Calendar spreads on eurodollar contracts have trimmed their previous bets on rate cuts for 2023, the Dec.22/23 spread is now technically flat vs -37bps a month ago. The Dec.22-June 23 spread is now pricing more than a full 25bps rate hike for next year, the differential was flat on Friday close