American Exceptionalism Keeps US Dollar in Demand. Forecast as of 04.08.2026

The Fed watches the markets, and the markets watch the Fed. A sustained rise in Treasury yields could help the Fed curb inflation without additional policy tightening—but only under certain conditions. The odds of that scenario unfolding remain low. Let's examine the situation and develop a trading plan for the EUR/USD pair.Major Takeaways Kevin Warsh is creating a negative feedback loop. The chances of the Strait of Hormuz reopening are dwindling. American exceptionalism is propping up th