Analyst: A brief conflict could limit the upside for the U.S. Dollar Index; the blockade of the Strait remains the biggest wild card
Svmuu News: Ebury strategist Matthew Ryan stated in a report that if the conflict in the Middle East is relatively short-lived, the upside potential for the dollar’s recent rally may be limited.He noted that the market is currently pricing in a conflict lasting about a month, based on signals from Donald Trump. Under such circumstances, the dollar’s gains should be limited, and a pullback is likely once the conflict ends. However, broader regional intervention and a sustained blockade of the Strait of Hormuz “pose clear risks.”He believes this would lead to a further surge in oil prices, thereby boosting the dollar and weighing on risk-sensitive currencies. (Jin Shi)
Source:Odaily · Source Link
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