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Sometimes I'll see sources online say things like markets are pricing in a certain amount of bps rate cuts/hikes by the Fed or ECB (or some other central bank) for a certain monetary policy meeting date

My main question is WHERE is this information found or how is it derived? I'm getting quite confused by looking at sources online

The only thing I found publicly available which makes sense is the Fed Funds Futures on CME that give probabilities for Fed Reserve Policy Decisions. But that's about it. I can't find any info for ECB or GBP.

Which derivative instruments are most commonly used to hedge interest rates(and what are they called and WHERE can I find them) for:

-EURO (Where can I find it and what's the instrument called?)

-GBP (Where can I find it and what's the instrument called?)

-JPY (Where can I find it and what's the instrument called?)

-AUD (Where can I find it and what's the instrument called?)

-NZD (Where can I find it and what's the instrument called?)

-CHF (Where can I find it and what's the instrument called?)

I have heard for EURO we can try to look at the 3 Month EURIBOR Swaps(is this the same as an OIS Swap? If not, what's the OIS Swap for Euro called and where can I find it and is the Euro OIS Swap a better indicator?). I also read about ESTR Futures. But I can't get a definitive answer anywhere on which derivative instruments are most commonly used by the market to price in what the implied rate will be. Thank you.

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  • $\begingroup$ For example WIRP on BBG. $\endgroup$
    – AKdemy
    Apr 20 at 23:03
  • $\begingroup$ Also CME's cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html $\endgroup$ Apr 20 at 23:11
  • $\begingroup$ @AKdemy so this sort of information is mainly on paid services then? $\endgroup$
    – Man Dem
    Apr 20 at 23:27
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    $\begingroup$ @Man Dem, it's a reasonably simple computation and as long as you use futures, you can get the market data for free on the exchanges website and implement it yourself. With swaps (OTC data), you will need a data provider. What is used will depend on the region (liquidity / availability of the instrument). Generally though, the vast majority of people interested in that type of data will have BBG or the like anyways. $\endgroup$
    – AKdemy
    Apr 20 at 23:36
  • $\begingroup$ @AKdemy That is what I was trying to ask. I don't know what the most commonly used futures or swaps instruments for the major currencies are called (other than the Fed Funds Futures for the USD). For example for the Euro, what would the best instrument be to find the implied rate? Is it the ESTR futures? The 3 month Euribor Swaps? The OIS Swap( I don't even know what the Euro OIS Swap instrument is called). $\endgroup$
    – Man Dem
    Apr 21 at 0:14

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