USD weakness accelerates as negative seasonality patterns emerge

The US dollar is experiencing broad-based weakness across major and emerging market pairs, with seasonal factors adding to fundamental pressures. EUR/USD has pushed above 1.0800, while USD/ZAR and USD/SEK are retreating from recent highs as year-end flows typically favor risk currencies over the dollar. December historically shows negative performance for the greenback as institutional rebalancing and reduced liquidity amplify moves. The Dollar Index has fallen 0.4% this week, breaking below key technical support at 106.00. Cross pairs like EUR/SEK are also adjusting to dollar weakness, creating opportunities in non-USD trades. Market positioning data suggests further dollar selling could accelerate if upcoming US economic releases disappoint. Traders should prepare for increased volatility and potential trend reversals as thin holiday markets can exaggerate price movements through year-end.