CME Group FedWatch suggests traders still see high probability of June hike

Following the Federal Reserve's release of its May 2-3 policy meeting minutes, CME Group FedWatch tool, which calculates unconditional probabilities of Federal Open Market Committee (FOMC) meeting outcomes to generate a binary probability tree, shows that the probability of a June rate hike increased to 83.1%.

On the other hand, odds of two more rate hikes in 2017 eased to 46% from 50% on Tuesday as the members adopted a cautious tone, noting that the uncertainties surrounding the Trump administration's policies continue to exist and more data is needed to confirm that the recent slowdown in the inflation and economic growth was transitory.

• FOMC minutes: Fed policymakers agreed that details of balance sheet plan should be announced soon, with start of reductions appropriate this year
• US Dollar pushes lower toward 97 on FOMC minutes