Pimco CIO: Iran War Could Push Fed to Raise Interest Rates

The US Dollar Index (DXY) is trading at 97.84, down 0.4% over the past 24 hours. The RSI is approaching oversold territory at 33.8, while the MACD remains negative below the signal line. News headlines suggest the Fed could raise rates if geopolitical risks escalate, which may support the DXY in the short term. However, current technical weakness and price action below the 20- and 50-day moving averages could limit upside. A continuation of the short-term downtrend appears more likely.

The news headline highlights that rising geopolitical risks have brought the possibility of a Fed rate hike back into focus. This could reduce risk appetite in the markets and create pressure on indices. Technically, the RSI is near 70 and in overbought territory, increasing the likelihood of a short-term correction. The MACD has fallen below the signal line, indicating weakening momentum. However, since the price remains above the 20- and 50-day moving averages, any decline is expected to be limited.

The news headline highlights that increasing geopolitical risks are bringing the possibility of a Fed rate hike back into focus. This could reduce risk appetite and put pressure on growth-oriented indices such as NDX. Technical indicators show the RSI at 78.8, indicating overbought conditions, which increases the likelihood of a short-term correction. Although the MACD remains positive, the overbought signal combined with geopolitical uncertainties may trigger selling pressure. Therefore, a downward movement can be expected in the near term.