What's the market narrative right now?

Markets trade stories: "the Fed is behind the curve", "inflation is peaking", "the dollar is losing its edge". The narrative decides which data matters and which surprises.

What's the market narrative right now? — central bank rate path diagram
A central bank's policy rate path across recent meetings

Post your read:

  • the dominant story as you see it
  • which releases could confirm or break it
  • the pairs that express it best
What's the market narrative right now? — risk-reward diagram
A risk-reward ratio of 1 to 2

Background: how interest rate decisions move currencies and risk-on risk-off.

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