U.S. Jobs Data to Influence December Federal Reserve Rate Hike Expectations

U.S. financial markets are closely watching upcoming manufacturing figures, private employment data, and Friday's nonfarm payrolls report, as these releases are expected to significantly influence expectations for a potential Federal Reserve interest rate hike in December. The Fed maintained its policy rate at 3.75% to 4.00% at its latest meeting, but two policymakers dissented in favor of a quarter-point increase. Markets are currently pricing in a 70% to 72% probability of a December hike, making each economic release highly consequential for monetary policy, bond yields, and risk assets.