UBS says markets are vulnerable to signs of no soft landing

Snippet from UBS Global Wealth Management hinting at market complacency:

• Markets are already pricing in a soft landing, and increasingly with the belief that relatively little growth pain is required for inflation to gradually return to 2%,”
• The markets are vulnerable to any signs that the economy, with the Fed’s steering, is at risk of not sticking to that soft landing.

A strong NFP report later on Friday could be a catalyst for expectations of perhaps more Fed rate hikes ahead and could give a bit of a wobble to complacency.

Previews earlier:

• July non-farm payrolls preview: ADP vs ISM edition
• US non-farm payrolls preview: “still strong demand for workers”

And, earlier from UBS:

• US non-farm payrolls is the 1st of 4 critical data points ahead of the Fed Sept meeting

This article was written by Eamonn Sheridan at www.forexlive.com. Source