From Macquarie:
We revise our assessment for the timing of the next Fed Funds rate hike due to a weak employment report for May. While the preponderance of data suggests the economy and labour market remain on firm footing, today’s report provides reason for the FOMC to err on the side of caution and defer on a hike.
We shift our base case timeframe from June/July to July/September. Our updated probability assessment is June (5%, prev. 55%), July (60%, prev. 25%), September (25%, prev. 10%), later than September (10%, prev. 10%).