🏦📊 USD Implied Rate Advantage Seen Fading Into 2024: Cable FX Macro

**As seen in Macro Walk report 10/13/23, subscribe at cablefxm.co.uk/reports

• The implied rate section in our Macro Walk report shows central bank pricing on a selected list of currencies, the data includes implied rate by time of the meeting using Bloomberg data

• The graph below shows USD implied rate spreads by tenor (or meeting ahead), a positive reading means the implied % holds an advantage over the currency

• Looking ahead, market pricing sees the USD rate advantage shrinking, however, this is still wide vs some currencies. 7 meetings forward, the differential leaves a 150bps premium vs the EUR and 500bps to the JPY