Markets Report - 03 May 2022

A daily breakdown of the markets for the 3rd May 2022, provided to you by Sterlex.

🇦🇺💵🇬🇧💷Given the RBA hiked rates 25bips and more > the 15Bips eyed, likely to see AUD supported but still sellers on rallies, along with equity risk in places. We prefer to keep a over arching long bullish view on the £ (respectively. Likely to see BOE keep up with the 25BIPS hike calls touted by money markets (atleast), with some chatter of 50BIPS, although the vote is likely to see 8-1, we could see more volatility if a 7-2 vote pushes for a larger > 25Bips hike.

🇺🇸 🏦Markets poised for the Fed Rate hikes (FOMC) due tomorrow where some money market and rates traders have priced in some of the 50BIPS expectations, with some market participants looking for 75BIPS rate hike surprise to the hawkish side further. Will be looking for any clues in J Powell or Brainard comments (which have seen a hawkish tilt lately, contrary to their usual dovish side). US 10 yr yields remain hot as bond prices stay down given the ongoing tone of risk, and equity risk swings moving away from the $. Mann, Bailey will be fence sitter/dampening again, with Ramsden, Saunders, our key Hawks Hawk from the board so eyes on them.