A resurgence in hawkish Fed expectations for the June meeting and beyond has fuelled a sharp rally in USD over the last week. On the back of last week’s FOMC minutes, market pricing for a further hike in June has jumped to above 60%. This marks a significant shift in sentiment given that pricing was sitting below the 10% level around the middle of the month. The shift comes on the back of a slew of hawkish Fed commentary recently, some stronger-than-forecast data and last week’s FOMC minutes which revealed a hawkish slant to discussions. Additionally, progress within the US debt ceiling negotiations looks to also be ... (full story)