Interest rate pricing has a huge effect across many financial markets at present – the correlation between short-term rates, rates volatility and the USD is certainly evident.
However, with such a big window for increased volatility in interest rates pricing, as traders try and price the prospect of a 25bp or 50bp hike at the 22 March FOMC, as well as peak fed funds pricing, could increased pricing result in a big move in the USD and NAS100?
In the video, we look at how we can look at the fed funds curve and understand ‘what is priced in’ – we look at how to measure the degree of cuts priced in for a specific period of time, and how to look at implied volatility in bond markets – and, why it is important for FX and index traders?
Interest rates and short-term US Treasury bonds are the first derivative and so many markets take their direction from these inputs - hopefully, this gives some understanding of how you can use TradingView more effectively to assess these inputs.
As always a great macro overview Chris, many thanks champ 👍🏻
PRO_Indicators
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This is brilliant content. Far above the average crap here. Even though using eurodollar futures spread to emulate the rate cuts expectation is a bit of a trick bc there also the euro included here! Still I do like the idea and I'lll copy you on that one. Hope you'll do more of these.
Pepperstone
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@PRO_Indicators, cheers Pro - keen to do more - any ideas on where content is lacking just reach out - stay safe