Global FX and Rates: Yield curve steepening, payrolls and FX hedge ratios

In J.P. Morgan's "At Any Rate" podcast, Meera Chandan and a panel of FX strategists discuss yield curve steepening in the UK, Europe, and the US, and its implications for currency markets. Francis Diamond explains that different factors drive steepening in each region: US steepening reflects repricing of Fed easing, Europe's is due to technical flows from Dutch pension funds, and the UK's is influenced by fiscal concerns. The panel also discusses the recent US payrolls number, with Patrick Locke noting its potential impact on the dollar, and Octavia Popescu shares insights on FX hedge ratios in Europe and the potential implications of the Norwegian elections for the NOK. The podcast concludes with a discussion of fiscal divergences and their impact on various currencies.