⚖️Rate Differentials Still Matter: Cable FX Macro

Rosbel Durán
3 hours ago
1 min read

Rate differentials still matter (positive slope), but geopolitics, oil, and risk sentiment are dominating right now—pushing the correlation down from historical norms. In calmer times (no wars or shocks). Currently, the slope in the relationship of G10FX pairs vs policy rates stands at around 0.44, in less geopolitically turbulent times, we could see this strengthen up to 0.55.

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