US Dollar Faces Fed Test as Treasury Yields Surge. Forecast as of 16.09.2026

The EUR/USD has been declining amid rising Treasury yields. However, the Fed's hawkish stance could limit further gains in Treasury yields while providing additional support for the US dollar. Let's analyze this situation and develop a trading plan.Major Takeaways The Fed can bring yields back below 5%. The US dollar will strengthen if the Fed surprises the market. The greenback could break the correlation. A sustained move above 1.1555 will offer a buying opportunity on the EUR/USD.Daily Fundam