Global FX: The dollar & AI, CNY, IEEPA, euro bloc
J.P. Morgan Global Research discusses recent developments in CNY, GBP, SEK, and the dollar, touching on AI, trade policy (IEEPA), and euro bloc implications. The podcast highlights ongoing shifts in FX dynamics driven by technology and geopolitical factors.
What the desk is arguing
J.P. Morgan's FX strategists review the interplay between the dollar and AI-related capital flows, the impact of the International Economic Emergency Powers Act (IEEPA) on CNY, and the relative performance of GBP and SEK within the euro bloc. They note that CNY faces headwinds from trade tensions, while the dollar remains supported by AI-driven productivity narratives.
Where it sits in our coverage
We have no internal coverage data for the currencies discussed. Our consensus view is neutral, with no specific targets or spreads available.
How other firms see it
No other firm stances are available in this excerpt.
Key takeaways
- 01J.P. Morgan highlights AI as a key driver for the dollar, while CNY faces IEEPA-related pressures.
- 02GBP and SEK are discussed in the context of euro bloc dynamics, with divergent monetary policy expectations.
- 03The podcast was recorded on 27 February 2026, indicating a forward-looking perspective on Q1 2026 FX trends.
Market implications
The commentary suggests that the dollar may continue to strengthen on AI-related inflows, while CNY could weaken due to trade policy risks. GBP and SEK may underperform if euro bloc growth disappoints. Traders should monitor IEEPA developments and AI sector data.
Risks to this view
IEEPA escalation could trigger sharper CNY depreciation. If AI-related optimism fades, dollar support may reverse. Euro bloc recession risk could amplify SEK and GBP weakness.
We discuss recent developments around the CNY, GBP, SEK and the dollar. Speakers Meera Chandan, Global FX Strategy Tiffany Wang, Emerging Markets Strategy Patrick Locke, Global FX Strategy Octavia Popescu Global FX Strategy Kunj Padh, Global FX Strategy This podcast was recorded on 27 February 2026. This communication is provided for information purposes only.
Institutional clients can view the related report at https://www.jpmm.com/research/content/GPS-5216241-0 for more information; please visit www.jpmm.com/research/disclosures for important disclosures. © 2026 JPMorgan Chase & Co. All rights reserved. This material or any portion hereof may not be reprinted, sold or redistributed without the written consent of J.P.
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Morgan or an authorized third-party (“J.P. Morgan Data”) in any third-party artificial intelligence (“AI”) systems or models when such J.P. Morgan Data is accessible by a third-party
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