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:
