According to the CME Group FedWatch Tool, markets are now pricing a probability of a 78.9% probability of a 25 bps rate hike in September. Yesterday, the probability stood at 72.9%.
Today’s data from the United States showed that the nonfarm employment increased by 213K in June following May’s 244K reading. The average hourly earnings, which is seen as a good sign of wage inflation, on a monthly basis rose by 0.2% to miss the experts’ estimate of 0.3%. Nonetheless, the CME Group FedWatch Tool suggests that markets see today’s figures as good enough to allow for another rate hike in September.
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