Moldova Criticizes Russia Amid Transdniestria Energy Crisis 
UBS Predicts Potential Fed Rate Cut Amid Strong US Economic Data 
Fed Holds Interest Rates Steady as Kevin Warsh Says Rising Treasury Yields Tighten Financial Conditions 
Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
Oil Prices Dip Slightly Amid Focus on Russian Sanctions and U.S. Inflation Data 
Geopolitical Shocks That Could Reshape Financial Markets in 2025 
Stock Futures Dip as Investors Await Key Payrolls Data 
RBA Signals More Rate Hikes Possible as Australia Battles Stubborn Inflation 
BOJ Expected to Hold Rates Steady While Signaling More Hikes Ahead 
UBS Projects Mixed Market Outlook for 2025 Amid Trump Policy Uncertainty 
Fed May Resume Rate Hikes: BofA Analysts Outline Key Scenarios 
Chile Central Bank Holds Interest Rate at 4.5% as Inflation and Global Risks Persist 
South Korea Raises Interest Rates to 2.75% as Inflation and Weak Won Drive Tightening 
Eurozone Bond Yields Fall as Oil Slump Eases Inflation Fears Ahead of Central Bank Meetings 
Quite a few FX analysts expected the Federal Reserve to hike rates than what was priced in by investors, leading to a higher expected path for short term rates over the coming 10 years.
The US Treasury yields have risen 7-10bp over the past week and the curve has bearishly steepened, driven by a combination of fundamental and technical factors. Recent data indicate that recessionary risks have receded somewhat.
Market depth in 2-year US Treasuries remains poor following a redefinition of minimum tick size on its interdealer trading platform. Meanwhile, liquidity across most other tenors has recovered from its year-end lows.
JPM’s gamma fair value model suggests implieds in shorter tails look cheap relative to longer tails.
Take a look historical performance over the past two decades suggests the vol surface tends to flatten (shorter tails and expiries outperform) when metrics of inflation expectations rise, particularly in later stages of the cycle when markets are focused on policy rates.
Given these results, and taken with recent Fed communication considering a move to average inflation targeting, we like tail curve flatteners; buy 3Mx2Y vs 3Mx30Y ATMF swaption straddles. Courtesy: JPM
Currency Strength Index: FxWirePro's hourly EUR spot index is flashing at 73 levels (which is bullish), hourly USD spot index was at 80 (highly bullish) while articulating at (14:02 GMT).
For more details on the index, please refer below weblink: http://www.fxwirepro.com/currencyindex
