According to CME FedWatch, the 25bp rate hike factored into the US FOMC in February has dropped to around 60%, while the unchanged rate has risen sharply to around 40%. In the European/London market at the beginning of the week, the bankruptcy of US SVB has once again heightened anxiety in the market. Germany’s two-year bond yield fell sharply, and the German DAX index fell more than 3% at one point.
It is assumed that the speculation of USD selling will spread in the market.
