Market pricing 30% odds of a Fed rate hike today – ANZ

By FXStreet FXStreet (Bali) – The ANZ Research Team notes that the market is pricing around 30% odds of a Fed rate hike later today.

Key Quotes

“It is less than 24 hours until the most closely watched Fed rates decision for years. Analysts are fairly evenly split on whether the long-awaited rates normalisation will kick off tomorrow (ANZ’s US economists pick it will), but the market is pricing around 30% odds.”

“Market odds tumbled on the financial market volatility that kicked off with China’s devaluation, volatility that has subsequently subsided but not completely gone away.”

“US CPI inflation data overnight were relatively close to expectations, not adding much to the pot.”

“The FOMC decision is at 4am AEST and one suspects traders across Australia and Asia will be giving up even more sleep. Watch this space.”
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Source:: FX Street