Hopes for a big rate cut at the upcoming FOMC meeting took a hit after today’s data releases. To be sure, the game is arguably not over as we still have tomorrow’s employment report ahead of us. Realistically though it is not likely to be sufficiently weak to drive the Fed to a 50bp cut. And, considering sentiment, there is arguably a case to be made that a sufficiently strong report would cast doubt on any rate cut at all. In contrast to the soft manufacturing ISM report, its service sector cousin was more upbeat. The index rose more than expected on the back of strong gains in the new orders and activity ... (full story)