Whipsaw in Rate Expectations After Payrolls and Strait of Hormuz News
Market expectations for a December rate hike reversed course over five sessions after a weak payrolls print, then rebounded on renewed geopolitical tensions in the Strait of Hormuz.
The month of July began with market pricing fully anticipating a rate hike by December. However, over the next five trading sessions, expectations swung wildly.
A dismal nonfarm payrolls report showing only 57,000 jobs added caused traders to unwind tightening bets. Subsequently, news of a renewed closure of the Strait of Hormuz has reversed that move, pushing expectations back toward a December hike.
Source: FXStreet Forex News