US Dollar Plummets As China Scales Back US Treasuries. Forecast as of 10.02.2026

While Europe is considering using capital weapons against the US, China is already using them actively. Beijing is urging Chinese banks not to buy US bonds. How does this affect the dollar? Let's discuss this topic and make a trading plan for the EUR/USD pair.Major Takeaways A sell-off in Treasuries weakened the US dollar. China is reducing its holdings of Treasury bonds. The erosion of confidence is hurting the US currency. Long positions on the EUR/USD pair formed at 1.1835 can be kept open.We