Amid recent developments, Barclays are now expecting the Fed to cut twice this year – once in June and another in September. It fits with the latest shift in market expectations since last month. That being said, their forecast is still a little underpriced as compared to Fed funds futures at the moment. Traders are pricing in ~70 bps of rate cuts by the Fed for the year, with it having gone as high as ~84 bps earlier in the week.

This article was written by Justin Low at www.forexlive.com.