The FED is praying for a soft landing. Bernanke is threatening with a new rate increase. Unemployment is at a good level: 4.5%.
Nevertheless, the currencies traders believe in a hard landing, because of this:
- They appear to be trading on the belief that, while US interest rates will fall in an effort to counter a slowdown, European rates will continue to rise – and, by implication, that Europe’s economic upswing has some way to go.
Pay attention, during next weeks.
