US Interest Rate Forecast: Weak Jobs Cut Fed Hike Odds Ahead of CPI

Weak US jobs data lowered the odds of a September Fed rate hike, shifting expectations toward a less hawkish path. Markets are now focused on the upcoming CPI release, which is likely to be the key catalyst for the next interest-rate direction. The same catalyst set also frames near-term EUR/USD moves as rate differentials adjust.

Analysis

Weak US jobs data lowered the odds of a September Fed rate hike, shifting expectations toward a less hawkish path. Markets are now focused on the upcoming CPI release, which is likely to be the key catalyst for the next interest-rate direction. The same catalyst set also frames near-term EUR/USD moves as rate differentials adjust.