Fed hike odds plunge after hot CPI report ...Middle East

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Fed hike odds plunge after hot CPI report
Implied probabilities for rate hikes this year plunged following today's US CPI report. There are now 94 bps in hikes priced in for the calendar year compared to 111 before the data.A May hike has fallen to just 40% from +70% yesterday while a hike at the June 12 meeting is still fully priced in, albeit barely.The result is a sizzling US dollar across the board with USD/JPY up 100 pips since the data to 150.37 and similar-sized USD moves elsewhere. This article was written by Adam Button at www.forexlive.com.

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