MUFG Research expects a 25bps hike from next week's FOMC meeting.

"We are continuing to stick to our call for another 25bps hike next week. The need for further monetary tightening by the Fed was backed up by the release of the latest NFP report on Friday that revealed that employment growth remains strong. There is little evidence yet that higher rates have triggered a sufficient slowdown in employment growth to satisfy the Fed that it has done enough," MUFG notes.

"On balance we believe the latest labour market developments favour another 25bps hike rather than a larger 50bp hike. Market attention will now shift to the release of the latest US CPI report tomorrow. It would likely take a significant upside inflation surprise now to revitalize speculation over a larger 50bps hike at next week’s FOMC meeting and trigger a US dollar rebound," MUFG adds.