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

Writer's picture: Rosbel DuránRosbel Durán

**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



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