🇺🇸❗️U.S. Monetary Conditions Ease On The Week: Cable FX Macro

**As seen in Macro Walk report 03/31/23, subscribe at cablefxm.co.uk/reports

• The financial conditions tracker in our Macro Walk report showed an easing in the stress indicator, an index constructed by Bloomberg, rose by 35 points this week. The rise means that monetary conditions are less tight than prior, the last read stood at -40, off the -127 lows seen in March

• Monetary stress spiked on the U.S. banking crisis, this led to repricing of the Fed's rate path, volatility in risk assets and rates. Heading into Q2, risk has kept bid as fears fade, while the VIX is back below 20.0 and high-yield benchmarks rose in line.

• The development is translated into a less stressed monetary scenario, this is worth noting as fears of the banking crisis and liquidity constraints had done part of the Fed's job, which is getting reversed as we speak