US Dollar May Fall Prey to Fed–Treasury Clash. Forecast as of 21.08.2026

The US appears to be following in Japan's footsteps. By attempting to control yields, the Treasury risks weakening the US dollar, as bond-market spreads may no longer support the greenback. Let's examine these developments and develop a trading plan for the EUR/USD.Major Takeaways The Treasury plans to lower Treasury yields. The Fed risks losing credibility. The government's policy clashes with the central bank. Short positions on the EUR/USD can be considered below 1.167.Weekly Fundamental Fore