Fed: Pricing for a Sep move remains below 30% - Westpac

Sean Callow, Research Analyst at Westpac, suggests that the July payrolls provided a much-needed reprieve for USD, but in a year of even greater NFP volatility than usual, it isn’t a game-changer for the Fed.

Key Quotes

“Pricing for a Sep move remains below 30%, with Governor Powell’s caution fitting the market impression that the FOMC remains in no hurry to act.

Risks on Dollar Index towards 93 ahead of Yellen speech at Jackson Hole but probably no further so long as the Fed continues to ponder higher rates. Record highs on the S&P 500 add to their impression in June that the impact of the Brexit shock on the US was short-lived.”