Market participants are now seeing no chance of a hike in 2016, especially as volatility returned in the market. Bank of Japan's (BOJ) introduction of negative rates seem to have only paused the selloffs for a day and market returned to January mood this week as oil price started dropping sharply.

Initially back in December, market was pricing around at least two hikes in 2016, while economists have been predicting three. Now latest FT survey shows, economist have not only cut back expectations they are seeing 20% chance of recession this year.

Federal fund future moved to new high for the year in recent selloffs.

• Market is now predicting with 58.3% probability that there would be no hike in 2016.
• Probability for just one hike standing at 33.1%.
• Probability of two hikes standing at 7.6%.
• Chance of three hikes being priced in at 0.9%
• Probability of four hikes, about to vanish at 0.1%.

Dollar on the other hand is holding ground against most currencies and likely to keep doing so, as expectations for hike from other central banks are also disappearing.

Dollar index is currently trading at 98.75, down -0.8% for the day.