TD Securities: Continued oil price shock may weaken the US dollar

TD Securities strategists said in a report that the continued oil price shock caused by the war in Iran could ultimately be bad for the dollar. They said the U.S. energy independence should delay the impact on the United States compared with the European Union and Asia, causing growth and relative interest rate differentials to temporarily shift in favor of the dollar. "In the end, even the United States and the Federal Reserve are not immune to the growth and macro impact of long-term disruption of energy markets. "They say that if the Fed continues to cut interest rates at the end of the year, the dollar should weaken in the medium term. Concerns about the U.S. deficit may also be exacerbated by increased defense spending.