Institution: Iran conflict supports short-term USD trend, but faces long-term downside risks

ChainCatcher news, according to Golden Ten Data, Monex Europe analysts stated in a report that unless there are credible signs of de-escalation in the Iran war, the US dollar may continue to be supported in the short term. This conflict has driven safe-haven funds towards the dollar, and the war has caused oil prices to rise, reinforcing the market's expectation that the Federal Reserve will maintain its tightening policy for a longer period. However, in the long term, the market underestimates the potential extent of US policy easing once concerns over energy prices subside, which means the dollar faces downside risks.