Financial market traders have raised the odds of a 50 basis point cut in US interest rates to 63%, while the market is widely divided over the Federal Reserve's next decision.

Forecasts range widely between a quarter-point or half-point cut, reflecting uncertainty rarely seen since the financial crisis.

The forecasts are reinforced by mixed labor market data, with prominent figures such as Bill Dudley, the former head of the New York Fed, backing a deeper cut. The discussions are the most complicated since 2007.

At the same time, yields on short-term US bonds fell significantly, while the dollar index fell against major currencies, reflecting market expectations of monetary easing.

Traders are also awaiting the release of the August retail sales report as a crucial factor in determining the future path of US interest rates.