Dollar Weakness May Not Last Amid Joint Intervention

The EUR/USD pair is testing its long-running downtrend resistance in early Asian trade on Monday, but market analysts believe that a recent artificial slide in the US dollar may not be sustainable.

A joint intervention by Japanese and US authorities last week has artificially driven down the dollar's value, leading to a rebound in EUR/USD. However, further intervention is expected if the yen weakens again, which could keep the dollar's weakness limited.

The euro area data has also been surprisingly strong, with inflation accelerating and economic surprise index surging to its highest level since early 2023. This suggests that the rebound in EUR/USD may not be solely driven by intervention-related factors.