Dollar Faces Downside Risks on US-Iran Ceasefire, ING Says
A US-Iran ceasefire and the reopening of the Strait of Hormuz are putting pressure on the dollar as energy prices fall and risk assets rally, according to ING analysts.
ING analysts Chris Turner, Frantisek Taborsky, and Francesco Pesole highlight that confirmation of a US-Iran ceasefire and the reopening of the Strait of Hormuz have introduced downside risks for the US dollar. Lower energy prices and a shift toward risk-on sentiment are weighing on the greenback.
The analysts from ING note that these developments are pressuring the dollar as safe-haven demand weakens. The combination of geopolitical de-escalation and falling oil prices has reduced support for the currency, making it vulnerable to further losses in the near term.
Source: FXStreet Forex News