Dollar's Worst Monthly Performance Since April as US-Japan Intervene
The US dollar has experienced its worst monthly performance since April due to rising Treasury yields and weakening greenback. The market's long memory of the 1985 Plaza Accord, where a coordinated intervention led to a sharp decline in the US Dollar Index, is also contributing to the dollar's decline.
Fed officials' hawkish rhetoric has failed to support the dollar, as Washington shifts its focus from the Middle East to the currency market. The recent news of joint US-Japan intervention to strengthen the yen has sparked selling of the US dollar across global currencies.
The EUR/USD pair is expected to break through 1.1540 and 1.1585 resistance levels, making it a suitable opportunity for long positions. However, the dollar's decline may be temporary as the US will eventually need to buy the EUR/USD pair to replenish its reserves.