Chance of July Rate Hike above 50%, Non-Farm Payrolls in Focus

Hawkish comments by Fed Chair Janet Yellen last Friday intensified speculations of a rate hike in summer. Speaking in Harvard University, Yellen suggested that "it's appropriate, and I've said this in the past, for the Fed to gradually and cautiously increase our overnight interest rate over time… Probably in the coming months such a move would be appropriate". CME's 30-day Fed funds futures project a 28% chance of rate hike in June and a 60% chance in July.