Sucden Financial: The market lacks strong confidence in a short-term resolution between the US and Iran, so the US dollar may find it difficult to significantly reprice upward.
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- Sucden Financial wrote in a report that the market does not have strong confidence that the US-Iran conflict will be resolved in the short term.
- The institution stated that cautious optimism surrounding negotiations has improved market sentiment, and safe-haven demand for the US dollar still exists, but news fatigue is starting to show.
- The institution added that this means the US dollar may find it difficult to be substantially repriced higher unless tensions further escalate or the Strait of Hormuz faces direct disruption.
- The institution said that, supported by resilient growth led by artificial intelligence, the stock market continues to decouple from broader macro signals.
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