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Dollar Price Action Slows Amid Treasury Department Announcement

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EUR USD JPY GBP
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The US Dollar price action has been affected by various market developments in recent days. On Wednesday, an announcement from the Treasury Department sparked a fresh lower-low for the dollar, but the move stalled afterwards.

EUR/USD and GBP/USD saw their breakouts accelerate despite this, while USD/JPY remained a key focus due to its crowded long trade status.

The Japanese Yen accounts for just 13.6% of the DXY basket, yet the USD/JPY pair is more than 50% above its early-2021 level. This has led to concerns about a potential unwind in the carry trade.

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