CME Group FedWatch June hike probably virtually unchanged post-US data

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 inches higher to 88.8% from 87.7% in the previous day.

Today's macro data from the U.S. couldn't change the markets' mind. Fed's favorite inflation gauge, core PCE price index eased to 1.5% on a yearly basis in April. However, it improved to 0.2% from -0.1% on a monthly basis, suggesting that the consumers are starting spending again following a drawback in the first quarter of 2017.

• US: Personal income increased $58.4 billion (0.4%) in April