US vs developed ex-US policy rates
here’s an update to a previous Chart Of The Week
The key point on this one is that the US has strayed far from the pack, and in the past 3 hiking cycles the Fed was much more aggressive in easing when it pivoted… meaning that if history repeats the US will do most of the heavy lifting on squeezing rate differentials, and hence taking away a previous pillar of support for the US Dollar.
So this would be a key macro/fundamental catalyst to more significant USD weakness — which already seems apparent in the technicals.
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Some might argue the market has taken the path of the black line -- in which case, keep calm and bull-on... $S&P 500(.SPX)$ $SPDR S&P 500 ETF Trust(SPY)$
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https://x.com/Callum_Thomas/status/1838716604986855878
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