The probability of a September Fed rate hike has dropped to 30.6%

August 14th, according to CME's "FedWatch" data, the probability of the Fed maintaining interest rates in September is currently at 69.4%, while the probability of a 25 basis point rate hike is at 30.6%.

Earlier reports indicated that U.S. retail sales for July recorded a -0.6% monthly rate, the largest drop since May last year, falling below market expectations of +0.1%. The unexpectedly weak U.S. retail sales data has led traders to further reduce their rate hike expectations.