Fed Hike Odds Plummet as US Data Fades from Focus

The US Federal Reserve's rate hike expectations have been scaled back significantly after last week's benign CPI data, with September hike odds now at just over 30%, down from 50% beforehand.

This reduced volatility is expected to continue until the Jackson Hole Economic Policy Symposium later this month, where a quieter calendar should also contribute to less market movement. The next set of jobs and inflation data will be released early next month ahead of the September Fed meeting, which could impact expectations.

The S&P PMIs are due out this week, with consensus expecting a marginal softening, but still remaining in expansionary territory. These figures should not significantly change market thinking unless there is a huge downside surprise.