[RT] Fed Funds and probability of hike rate

[trader <trader_wiz@xxxxxx>]

Realtraders,

Here is an excerpt taken from a news agency some days ago:


 >"Prices of July Fed Funds reflect a 48% chance of a 25bps rate hike at
 >the June 27/28 meeting. That probability is almost 30% higher than
what
 >was prices in after last week May payroll data."

What's the calculation to extrapolate the probability of a FED hike from
the July Fed Fund price?

Thanks for your comments.

Regards,
Alberto