Morgan Stanley: Energy shock may push the US dollar higher in the short term, recommends selling on rallies

According to a report from Golden Ten Data on March 30, Morgan Stanley strategists stated that due to the energy price shock triggered by the Iran war, the US dollar may rise further in the short term. However, they pointed out that once the market shifts focus from pricing in the inflationary impact of rising energy prices to the negative impact on economic growth, especially as defense spending increases, the US dollar may turn weaker. They suggest that investors should sell during a USD rebound rather than buy on a pullback.