FX Daily: AI jitters have damaged USD safe haven appeal

USD: AI jitters leave USD on less solid ground AI-related jitters entered the FX picture last week, although currencies are more accurately borrowing the reaction from the rates channel. The USD two-year OIS/SOFR has dropped 25bp from the 14 October post-US CPI print. These are mammoth moves considering they have been driven almost entirely by market sentiment and positioning.