Antje Praefcke, currency analyst at Commerzbank, analyzes the disagreement between analysts, the Fed and the market regarding the possibility of a soft landing.
Analysts against market expectations
Last week I attended a financial symposium and, interestingly, all the analysts present agreed that a recession will occur in the US, sooner or later. Our experts are waiting for you too. The market, on the other hand, assumes, like the Fed, that there will be a soft landing.
A soft landing cannot be excluded. Each series of positive data in the US fuels this opinion even more. That is why the dollar is in demand regardless of the conflict in the Middle East. However, this view is likely already largely priced in, which is why the dollar will be able to benefit less and less from positive data and is currently struggling to gain further ground.
And at some point, the million-dollar question will be: who is right, the market and the Fed or the majority of analysts? That will also be decisive for the destiny of the Dollar. However, we won’t know for a few months.
Source: Fx Street

I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.