CME Group FedWatch Tool June hike probability slipped below 90%

After rising to 96% on Thursday, CME Group FedWatch Tool's, which calculates unconditional probabilities of Federal Open Market Committee (FOMC) meeting outcomes to generate a binary probability tree, rate hike probability for June eased to 88% on dismal macroeconomic data from the United States. However, the probability of a September hike remained unchanged around 23%.

Today's data revealed that the nonfarm employment growth in the U.S. dropped to 138,000 in May from April's revised 174,000 increase, missing the market expectation of 185,000. Furthermore, average hourly earnings remained unchanged at 2.5%. 

• US: Total nonfarm payroll employment increased by 138,000 in May
• US: Goods and services deficit was $47.6 billion in April, up $2.3 billion from $45.3 billion in March
• ISM New York Index eased to 46.7 from 55.8 in May