AI’s mixed economic signals

FT analysis argues that advances in AI are sending mixed signals for the economy, complicating central bank outlooks and leaving FX markets uncertain. For EURUSD specifically, the piece suggests the pair is likely to remain rangebound as investors balance potential productivity-driven disinflationary effects from AI against upside risks to wages and demand that could support tighter policy. Traders are portrayed as waiting for clearer macro data and central bank guidance before committing to a directional trade, keeping euro-dollar volatility subdued in the near term.