Traders raise Fed's 50 bps rate cut probability to 39% in September as US economic data for August rolls in

Today's release of the U.S. ISM August Manufacturing PMI report showed that the U.S. economy continued to contract, according to the Chicago Mercantile Exchange (CME), the Fed's usual out of the data, by the impact of the weak data, traders will be the Federal Reserve in September to cut interest rates by 50 basis points of the odds of 30 per cent a day earlier to 39 per cent . However, the betting favourite remained 25 basis points at 61%. The main event in U.S. macro news remains Friday's August jobs report and what could be the ultimate determinant of a 25 or 50 Fed rate hike, with economists forecasting a rebound to 160,000 jobs from 114,000 in July. The unemployment rate is expected to fall to 4.2 per cent from 4.3 per cent.