CME Group FedWatch: Market expectations for a June rate hike at 63.1%
|CME Group FedWatch tool, which calculates unconditional probabilities of Federal Open Market Committee (FOMC) meeting outcomes to generate a binary probability tree, shows the probability of a rate hike in June fell to 63.1% from 67.6% (yesterday) on the last trading day of April amid dismal macroeconomic data from the US.
Today's data showed that the U.S. economy grew at its weakest pace since 2014, with the real GDP increasing at a 0.7% annual rate in the first quarter of 2017. The main drag on the growth rate seems to be the weak consumer spending accompanied by higher imports and downturns in private inventory investment.
Despite today's drop, CME Group FedWatch tool suggests that markets are still expectant of a June rate hike.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.