The Fed funds futures market is currently being roiled market fresh bets on a 75 bps Fed hike.
The odds of that coming Wednesday are now 70%, up from 25% earlier today and negligible before Friday's CPI report.
That thinking has led to a further rout in US equities and a flight to the US dollar. The S&P 500 is down 151 points to 3749, or 3.8% lower. The Nasdaq is down 4.5%.
The fresh slump has sent the USD to new daily highs against the euro, pound and commodity currencies. In terms of the bigger picture, cable continues to break below the May lows.
cable daily
