Comments from BoA/Merrill Lynch:
"Today's events won't likely impact the incoming data before the September FOMC meeting. Instead, we think that the Fed will need to make a risk assessment: is the greater uncertainty after the Chinese yuan depreciation enough to warrant postponing liftoff? The FOMC also has the option to slow the pace of subsequent hikes, should downside risks be realized," BofA ragues.
"Fed officials will need to weigh these risks against the realized cumulative improvement in the US labor market. The Fed call is now closer than before, but it may take a significant reaction by global markets for the FOMC to stay on," BofA adds.
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