Meeting-by-Meeting Pricing: Reading the OIS Curve for Odds, Not Direction
Posted: Wed Oct 28, 2026 12:48 am
Overnight index swap contracts tied to specific central bank meeting dates allow market participants to back out an implied policy rate for each meeting. Comparing that implied rate with the current policy rate gives a rough probability of a move, usually expressed as a fraction of a standard step.
The key lesson for a scalper is that price reacts to the gap between the decision and the pricing. A hike priced at ninety percent and then delivered tends to produce a muted reaction, while a hold against that same pricing can jolt a currency sharply. The headline matters less than what it does to the remaining meetings on the curve.
Caveats apply. Implied rates include small term premia and technical noise, so a reading of fifty-fifty is an approximation rather than a precise poll. Quarter-end funding pressure can also distort the shortest tenors.
Many traders watch how later meetings reprice within minutes of a release, because a shift there often shows whether the statement changed the expected path even when the decision matched forecasts. That repricing is frequently what the currency follows.
The key lesson for a scalper is that price reacts to the gap between the decision and the pricing. A hike priced at ninety percent and then delivered tends to produce a muted reaction, while a hold against that same pricing can jolt a currency sharply. The headline matters less than what it does to the remaining meetings on the curve.
Caveats apply. Implied rates include small term premia and technical noise, so a reading of fifty-fifty is an approximation rather than a precise poll. Quarter-end funding pressure can also distort the shortest tenors.
Many traders watch how later meetings reprice within minutes of a release, because a shift there often shows whether the statement changed the expected path even when the decision matched forecasts. That repricing is frequently what the currency follows.