On Wednesday (Oct 26), the sub-session, rose sharply, temporarily traded at 111.09, or 0.22%.
David Solomon, CEO of Goldman Sachs, noted that economic conditions will “tighten significantly” from here on out with a clear commitment to raise the path target, and that in an economy where inflation is entrenched, it will be hard to get out of inflation without a real slowdown.
Frank Pettigas, head of Morgan Stanley’s international business, said there is no doubt that 2023 is looking a little risky and it is fairly safe to say that the U.S. will probably not achieve a soft landing.
But Mohamed El-Erian, chief economic adviser at Allianz, said the recession was not a “foregone conclusion” thanks to relatively resilient Labour and credit markets, while Wall Street had priced in high interest rate risk.
While the Fed faces greater challenges than it did under Paul Volcker, El-Erian said the central bank could still avoid a recession in its anti-inflation campaign.
Dollar index pressure: 112.58——115.3 Support: 110.2—–109.5
