Perhaps I'm missing something: In Iteration 1, it says juxtaposition has higher priority than any operator. In that case, how is the lambda declaration (x y ->

Perhaps I'm missing something: In Iteration 1, it says juxtaposition has higher priority than any operator. In that case, how is the lambda declaration (x y -> (...)) not interpreted as a function call to the function x with the argument y? Or is the author simply saying that this will unambiguously create an AST of ((x y) -> (...)) regardless of what -> does?