Analyst: Strong NFP Data Dampens Rate Cut Odds in H1, but Complete Ruling Out Still Premature

BlockBeats News, February 11th, Investinglive analyst Justin Low said all eyes are on the non-farm payroll data, with market participants waiting for the news to react. Currently, traders expect the Fed to cut rates by a total of about 60 basis points this year, with the pricing indicating a 25 basis point rate cut at the June meeting. Yesterday's weak consumer picture naturally reinforced this pricing expectation. If today's non-farm payroll data shows strength and the unemployment rate stabilizes, it suggests that the Fed may keep rates unchanged for a longer period. In an optimistic scenario, this could significantly reduce the risk of a rate cut in the first half of the year. However, given the mixed signals from yesterday's U.S. consumer data, it is still too early to completely rule out the possibility of further rate cuts in June or July. (FXStreet)