Mitsubishi UFJ: Nvidia's performance below expectations may lead to a weaker dollar

According to Jinshi reports, Mitsubishi UFJ analyst Derek Halpern stated that if the upcoming Nvidia earnings report triggers further declines in the U.S. stock market, the dollar may weaken. He pointed out that the dollar is currently positively correlated with the stock market, and concerns about the potential impact of declines in technology/AI sector stocks on the overall economy have resurfaced. Furthermore, a further drop in the stock market would increase the likelihood of the Federal Reserve taking an "insurance-style" rate cut in December. The market will then focus on the U.S. non-farm payroll data for September, which will determine the dollar's trajectory before the end of the year.