The US dollar is rallying on the back of aggressive Fed tightening expectations and a broader risk-off move in tech equities. Investors are liquidating positions to prepare for significant upcoming IPO supply.
Key Takeaways
- 1.The US dollar is supported by hawkish Federal Reserve pricing and a risk-off environment driven by tech stock sell-offs.
- 2.Investors are reallocating portfolios ahead of a significant $75-85bn SpaceX IPO.
- 3.The Polish Zloty is considered the most vulnerable currency in the CEE region due to the National Bank of Poland's dovish stance.
Table of Contents
- USD: Fed pricing and risk-off mood to keep the dollar bid
- EUR: ECB to provide some rearguard support for the euro
- GBP: BoE will try to avoid tightening
- CEE: Zloty seems most exposed amid risk-off mood
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Authors
Chris TurnerFrantisek TaborskyFrancesco Pesole
Securities
DXYSpaceX
Themes
Fed TighteningTech Sector Indigestion
Regions
EuropeUnited StatesGermanyPoland