The EUR/USD pair has steadied following the initial volatility triggered by the energy price shock from Operation 'Epic Fury'. Market attention has now shifted from the immediate impact to the expected timeline and duration of the energy disruption. While the US Dollar initially saw a sharp rebound as a safe-haven asset, investors are now evaluating the long-term inflationary pressures and their persistence. MUFG analyst Lee Hardman continues to anticipate the Dollar Index (DXY) returning to a range between 96.000 and 100.00 in light of the current geopolitical backdrop. This stabilization phase suggests that markets are transitioning from a reactive stance to a more calculated assessment of central bank policy implications. The evolving landscape remains a critical factor for major currency pairs as the duration of the energy shock becomes the primary market driver. Investors remain focused on how sustained energy costs will influence global capital flows in the coming weeks.
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