Traders raised the probability of a 50 basis point rate cut by the Federal Reserve in September to 39% due to weak economic data.
According to CoinDesk, the US ISM Manufacturing PMI report released today showed that the US economy continues to contract. Due to the weak data, traders have increased the probability of a 50 basis point rate cut by the Federal Reserve in September from 30% the previous day to 39%. However, the bet on a 25 basis point hike remains the favorite at 61%.
The main event in US macroeconomic news is still the August employment report on Friday, which could also be the determining factor for the Federal Reserve's final decision to raise rates by 25 or 50 basis points. Economists forecast that job positions will rebound from 114,000 in July to 160,000. The unemployment rate is expected to decline from 4.3% to 4.2%.
