Equities | FX | Global | Rates
Markets to Watch This Week: US CPI and UK GDP in Focus
- By Bilal Hafeez
- 1 min read
Market Moves
Hike expectations are rising across Scandinavia and the $-Bloc. Sweden’s two-year OIS swap jumped +2.7 standard-deviations (std-dev), closely followed by the ten-year OIS swap (+2.6 std-dev). It came as the Riksbank’s minutes revealed all board members were prepared to raise the policy rate quickly if necessary. Similarly, neighbouring Norway saw smaller, but still significant, moves in their two- (+1.9 std-dev) and ten-year (+1.8 std-dev) OIS swaps ahead of Norwegian CPI tomorrow. Markets are expecting it to reach 4.7% YoY. Norges Bank had forecasted 4.5% YoY for March. Meanwhile in the $-Bloc, expectations for a more hawkish central bank have increased, with AUD, CAD and NZD ten-year OIS swaps all up at least 2.0 standard-deviations over the past week.
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