CME Group FedWatch's Dec hike probability jumped above 90% on robust wage growth

The markets are now pricing a 91.7% probability of a 25 bps Fed rate hike in December following the nonfarm payroll report from the U.S., according to the CME Group FedWatch Tool. 

• US Dollar index breaks into fresh highs, US wage inflation key driver

Although today's data revealed the nonfarm payrolls decreased by 33,000 jobs, the first negative reading since 2010, investors focused on the higher-than-expected growth in wages, which is likely to ramp up inflation expectations. According to the U.S. Bureau of Labor Statistics, average hourly earnings increased 0.5% on a monthly basis in September following a 0.3% rise in August and surpassed the market estimate of 0.1%. On a yearly basis, the data advanced to 2.9% from 2.5%.

• US: Payrolls distorted, but strong wages boosts case for Dec rate hike - ING