Mitsubishi UFJ: After the Democratic Party's sweeping victory, the dollar's movement depends on the Iran situation

(1) Herpani from Mitsubishi UFJ Bank stated in a report that if the Democratic Party sweeps the US midterm elections and President Trump does not take further action against Iran, the US dollar may extend its decline. (2) Herpani noted that the first unknown is whether Trump will use this lame-duck session to escalate the Middle East conflict. (3) Herpani stated that Trump has mentioned his voters understand his actions regarding Iran, which could indicate further actions are impending. (4) Herpani believes that if Trump does not attack Iran and sees voters' rejection of his policies as a reason to seek an agreement, then the likelihood of a weaker US dollar persisting increases significantly. (5) The US Dollar Index fell by 0.5% to 101.329, after earlier touching a one-month low of 101.245.