🏦📊USD Implied Rates Rise After U.S. Data: Cable FX Macro

• Implied U.S. policy rate for 1-year ahead has now risen above 5.25%, last at 5.338%. This is an increase of 13bps, however, looking beyond this year, the 2-year tenor is up 19bps on the week at 4.9% as markets drop expectations of rate cuts from the Fed

• Economic data continues to show strength from the U.S. while inflation fails to ease. The most recent reading of the Fed's preferred measure of prices jumped to 4.7% Y/y in January, higher than the consensus of 4.3%