FXStreet (Edinburgh) – According to Senior Analyst at Danske Bank Christin Tuxen, fixed income markets could now be pricing in just one rate hike by the Fed this year.
Key Quotes
“With the US employment report being on the weak side, the market declined the probability for a September hike to an even greater degree and the October Fed Funds contracts (in our view the best measure of a September hike) now pricing around 25% chance of a hike (was 60% less than a month ago)”.
“Thus it seems like the market is settling for a maximum of one hike this year.
(Market News Provided by FXstreet)