Traders Pare ECB, BOE Rate-Cut Bets Further After US Jobs Beat
- Less easing seen after inflation readings across euro area
- Stronger-than-expected US jobs report amplified the move
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Traders further pared bets on interest-rate cuts from the European Central Bank and Bank of England following an unexpectedly strong US jobs report.
Money markets priced fewer than 140 basis points of monetary-policy easing by the ECB and less than 120 basis points by the BOE in 2024, according to swaps tied to the central bank meeting dates. It’s the first time since mid-December that traders bet on fewer than six and five quarter-point cuts respectively.