- The Federal Reserve has communicated its intent to bring the Fed funds rate to a neutral setting and maybe higher in recognition of the persistence of unacceptably high inflation.
- The European Central Bank will continue to buy bonds through June. The swaps market discounts a tightening cycle that begins in July and is anticipating more than 80 bp of hikes in the second half.
- Surveys suggest that Japanese businesses are more concerned about the yen falling to 20-year lows than officials who seem more focused about the pace of the adjustment.
For further details see:
May 2022 Forex Monthly