Traders bet that the European Central Bank will follow the Federal Reserve in cutting interest rates by 50 basis points

ChainCatcher news, the money market has increased its bets on the Federal Reserve easing monetary policy, with the intensity far exceeding the expectations of policymakers. Soon after, the market also ramped up bets that the European Central Bank would follow the Fed in cutting interest rates.

Traders currently believe there is a 60% chance the European Central Bank will cut rates by 50 basis points in September, having fully absorbed the expectation that the Fed will cut rates by 50 basis points in September. Meanwhile, the likelihood of the Bank of England cutting rates by 25 basis points is rising.

These bets may continue as the market generally flees risk assets, increasing safe-haven buying of bonds.