🏦📊USD Priced In For Most Aggressive Easing Next Year: Cable FX Macro
- Rosbel Durán
- Nov 22, 2023
- 1 min read
**As seen in Macro Walk report 11/17/23, subscribe at cablefxm.co.uk/reports
Overnight indexed swaps have stepped up rate cut expectations for 2024, most of our watchlist is priced in for easing over the next 6 meetings. The BoJ is a clear divergence as it lags DM central banks and markets expect policy normalization to take place over the next year
The EUR and USD are seen trimming benchmark policy rates at about the pace by June, however, the Fed is seen loosening further into the long-end of the swaps curve
O/N indexed swaps price in about 30bps of easing by June and a total of 62bps by September. The expectations compare to an about unchanged RBA by the same time next year
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