FX DAILY : AI JITTERS HAVE DAMAGED USD SAFE HAVEN APPEAL | HELLENIC SHIPPING NEWS WORLDWIDE

What happened: AI-related jitters entered FX markets, with the USD two-year OIS/SOFR dropping sharply, and analysts say the dollar may not be the safe-haven of choice if instability originates in tech/AI. Key numbers: USD two-year OIS/SOFR fell 25bp from the 14 October post-US CPI print. DXY return to 101.0 possible. Why it matters: The content says stock market turmoil is seen as enough to reduce Fed tightening plans, and a December Fed hike remains likely, so the repricing is not viewed as the start of a major USD downtrend.

AI-related jitters entered FX markets, with the USD two-year OIS/SOFR dropping sharply, and analysts say the dollar may not be the safe-haven of choice if instability originates in tech/AI.

The content says stock market turmoil is seen as enough to reduce Fed tightening plans, and a December Fed hike remains likely, so the repricing is not viewed as the start of a major USD downtrend.