CME Group FedWatch's June hike probability eased below 80% post-CPI

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 on Friday dropped to 73.8% from 83.1% on Thursday as the consumer inflation data from the United States missed the expectations.

Although today's data showed that the consumer price index on a monthly basis rebounded to 0.2% from -0.3% in March, it eased to 2.2% from 2.4% on a yearly basis. Other data revealed that the retail sales in April increased by 0.4% from 0.1% in March and missed the consensus of 0.6%. 

• US: CPI for all items rises 0.2% in April as shelter, energy, and food indexes all increase
• US: Advance estimates of U.S. retail and food services sales for April were $474.9 billion, an increase of 0.4%
• US: Real average hourly earnings for all employees increased 0.1 percent from March to April

Pressured by the weakening rate hike expectations, the US Dollar Index fell sharply and is now at 99.13, down 0.4% on the day.