Market Analysis: The Market is Selling Off the Dollar, Not the United States

According to Odaily, market analyst Jeremy Boulton stated that traders are selling the US dollar, but not selling the United States itself. US Treasury bonds remain stable, and the stock market has soared to historic highs. The stability of the bond market indicates that the market has little or virtually no substantial concerns about the economy. From this perspective, a weaker dollar is good news for the Trump administration, as it stimulates the US economy, supports the stock market, and lowers export prices in the context of a trade war. The dollar has only given back a small portion of the cumulative gains from 2011 to January 2025 (the onset of the trade war). The market's willingness to sell the dollar helps alleviate issues caused by its previous strength. That round of appreciation was already excessive and, from a technical standpoint, was in an overbought state, contributing to a significant expansion of the current account deficit. In the first three quarters of 2025, the US current account deficit has narrowed from $450 billion to $226 billion. If the dollar weakens further, the deficit may continue to shrink. Overall, although the dollar has given back some of its strength, there is almost no need for the US government to worry. (Golden Ten Data)