FX Daily: AI Jitters Add Fuel To USD Rally

Tech-led equity sell-offs and safe-haven flows are driving a strong USD rally. Meanwhile, the NBH has signaled a dovish path, and European growth concerns continue to weigh on the Euro.

Key Takeaways

• 1.Equity turmoil, particularly regarding tech and semiconductor stocks, is fueling a USD rally as investors seek safe havens.
• 2.Diverging growth expectations between the US and Europe, alongside poor German PMI data, are pressuring the Euro.
• 3.The National Bank of Hungary (NBH) has adopted a notably dovish stance, committing to a 'mini rate cut cycle'.

Table of Contents

• USD: Hard to pick a top
• EUR: Eyeing 1.130
• AUD: Hot core CPI to keep RBA communication hawkish
• HUF: NBH becoming the most dovish player

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