Fed Fund Futures Flip, Pricing a 92% Chance For a Rate Cut

[B]Fed Funds Futures are pricing a 92% chance that the FOMC will cut 25bp to leave the benchmark interest rate at 1.75%, which has jumped from 0% from last week. Meanwhile, Fed Funds are also pricing an 8% chance that the MPC will leave the interest steady at 2.00%, which has fallen from 98% from the prior week. The recent developments in the U.S. financial sector have clearly taken a toll on the interest rate expectations for the Fed, which would only fuel bearish sentiment for the dollar going forward.[/B]