FX Files – Payrolls challenge the Fed narrative

FICC Strategy Reports

We enter a big US data week, headlined by CPI on Wednesday and retail sales on Friday, on the back of a weaker than expected US payrolls report. The release has helped change the September policy narrative; September Fed pricing immediately post NFP retreated back to around 9bps (now around 11bps), this compares with around 17bps this time a week ago.

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