August 05, 2024 at 08:51PM
The market was pricing in a good chance of an intermeeting rate cut earlier today but that’s since cooled as markets have somewhat stabilized. We will be closely watching Japanese stocks in the session ahead, particularly banks for signs of contagion.
For now, the pricing continues to be aggressive even without any Fed validation that a 50 basis point cut that is even on the table.
85% chance of 50 bps at the September meeting, with the remainder at 25 bps
85 bps priced in for November
118 bps priced in for December
204 bps priced in for June 2025
This article was written by Adam Button at www.forexlive.com.
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