On the other hand, for the BoJ and BoC it barely moved as there’s been much less urge for rate hikes due to more subdued economic conditions.
The Fed pricing remains out of touch with the reality. The economic data has been showing economic resilience and even improvement in the labour market, though it could worsen the longer the Strait of Hormuz remains closed. As for all the other economies, price pressures have been increasing in the US too.
The US stock market has been trading at new record highs and that’s a positive for the wealth effect and financial conditions. The US dollar has also lost all its war-led gains. There’s literally nothing to justify the rate cut bets
How have interest rate expectations changed after this week’s events?
