US rate cut expectations are being pushed back further after Friday’s forecast-beating NFPs showed the US labor market in robust health. The first 25 basis point cut is not fully priced-in until the December meeting, although the November meeting is a live option. In total, 38 basis points of cuts are seen this year, suggesting that it is currently a coin toss between one of two moves.

US Dollar Jumps After NFPs Thump Expectations, Gold Hits a One-Month Low

Friday’s US Jobs Report shocked the market and sent US Treasury yields spinning higher and gold and silver sliding lower. Later this week we have May consumer and producer inflation, while the latest FOMC meeting will see all policy settings left untouched. The FOMC press conference may give some clues as to the Fed’s current thinking, along with the latest Summary of Economic Projections (dot plot).

For all market-moving economic data and events, see the DailyFX Economic Calendar

US Treasury yields jumped late Friday with the rate-sensitive UST 2-year adding 15 basis points after the jobs data.

US TREASURY 2-YEAR YIELD