Geopolitical risks are escalating, and the dollar may become the ultimate winner

According to Jinshi reports, economists at Capital Economics analyze that as the Iranian conflict evolves, global financial markets may be impacted by fluctuations in investor risk appetite. If the conflict escalates, government bonds may not provide reliable safe-haven protection, and expectations for monetary easing may be delayed. The US dollar may continue to strengthen, primarily benefiting from the termination of interest rate cuts, which makes relative yields favorable for the dollar, as well as the US's position as a net energy exporter.