<p style=““ class=“text-align-justify“>The implied odds of a 100 bps rate hike by the Fed this week have crept back up a little to ~19% now, roughly where it was before the UMich report at the end of last week <a target=“_blank“ href=“https://www.forexlive.com/news/umich-september-us-prelim-consumer-sentiment-595-vs-600-expected-20220916/“ target=“_blank“>here</a>. Those are still relatively paltry odds but the fact is that markets are leaning towards expecting more from the Fed – with the baseline set at a 75 bps rate hike.</p><p style=““ class=“text-align-justify“>I reckon that might say something about the reaction to the policy decision later in the week, with markets seemingly leaning towards a more hawkish message to cover for the extra that is being priced in above.</p>

This article was written by Justin Low at forexlive.com.