The non-farm data strengthens the expectation of a one-time 50 basis point rate cut by the Federal Reserve and the European Central Bank.

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ODAILY
08-02
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Odaily Odaily News: US non-farm payrolls data was weaker than expected, enough to prompt a larger rate cut. The market currently expects that the European Central Bank has a 20% chance of a 50 basis point rate cut at its September meeting, and a 70% chance of a 25 basis point cut in October. Current swap contracts show that the market expects the Fed to cut interest rates by 50 basis points multiple times, with a 75% chance of a 50 basis point cut in September, a 60% chance of a 50 basis point cut in November, and a 15-20% chance of a 50 basis point cut in December. (Jinshi)

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