The US Dollar is strengthening as strong labor data and Middle East geopolitical tensions drive market expectations for future Fed rate hikes. Meanwhile, South Korean authorities are intervening to support the Won following an AI tech stock sell-off.
Key Takeaways
- 1.The US dollar has regained upward momentum due to strong US labor market data and geopolitical risks stemming from military tensions in the Middle East.
- 2.Markets are repricing Fed rate expectations with nearly 50bps of hikes now priced in by mid-next year.
- 3.South Korea is implementing emergency measures to stabilize the Won following a sharp sell-off in AI tech stocks and concerns over regional currency weakness.
Table of Contents
- USD regains upward momentum on back of higher oil price & US yields
- USD: Fed rate hike expectations & military strikes reinforce upward momentum
- USD/Asia: AI tech sell-off & emergency policy support in Korea
- KEY RELEASES AND EVENTS
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Authors
Lee Hardman
Securities
KOSPIUS Dollar IndexCCMPBrent Crude Oil
Themes
Geopolitical risk in the Middle EastFed rate hike repricingAI tech equity correction
Regions
Middle EastAsia PacificUnited StatesSouth KoreaIsrael