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Futures open higher after soft labour market data

SONIA
  • SONIA futures moving higher after this morning's slightly soft labour market data with the Dec-23 contract 6.5 ticks higher on the day and Dec-24 contract up to 7.5 ticks higher on the day.
  • Markets now price around 19bp for the June meeting (from 21bp ahead of the data) and a cumulatively peak of 40bp priced by September (down from yesterday's close of 45bp). The first cut is still fully priced by March 2024.
  • The opening of UK STIR markets has seen GBP move to its weakest levels of the day with GBPUSD at 1.2470 and EURGBP at 0.8715 at writing.

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