Institution: The Iran conflict supports the short-term trend of the dollar, but faces downward risks in the long term

According to Jinshi News, analysts at Monex Europe stated in a report that the dollar may continue to find support in the short term unless there are credible signs of de-escalation in the Iran conflict. This conflict has driven safe-haven funds into the dollar, and the war has led to rising oil prices, reinforcing the market's view that the Federal Reserve will maintain a tight policy for a longer period. However, in the long term, the market may be underestimating the potential extent of policy easing in the U.S. after concerns about energy prices subside, which means the dollar faces downside risks.