Traders see 100 pct. chance of Fed rate cut in July

Traders are confident that the Federal Reserve will cut rates next month according to the fed funds futures market. The market is currently pointing to a 100 percent chance the central bank will ease monetary policy in July, with a 67.7 percent chance of one rate cut to 2.0 percent to 2.25 percent range and a 32.3 percent of two rate cuts, according to data from the CME FedWatch tool on Thursday.

Although the Fed kept interest rates unchanged on Wednesday, Fed Chairman Jerome Powell signaled a more dovish approach in the future. "Many participants now see the case for somewhat more accommodative policy has strengthened," he said at a press conference following the policy statement, adding that policymakers are concerned about trade developments and global growth. "Risks seem to have grown," he underlined.