Traders are keeping a close eye on today’s nonfarm payrolls report, as it could determine whether markets price a greater or lesser than 50% chance of a Fed rate hike in September. Fed funds futures have recently pared expectations for two rate hikes by December, with the probability of a September hike sitting at 54.6% at Thursday’s close.
If the NFP report undershoots expectations, it could further reduce those odds and weigh on the US dollar, which is already hovering near several important support levels. Hopes of a US-Iran peace deal have helped send crude oil prices down by around 20% over the past