Market Analysis: The Market is Selling Dollars, Not Selling America

Odaily News: Market analyst Jeremy Boulton stated that traders are selling dollars but not selling America. U.S. Treasury bonds remain stable, while the stock market has surged to record highs. The stability in the bond market indicates that the market has little to no substantial concerns about the economy. From this perspective, a weaker dollar is good news for the Trump administration, as it stimulates the U.S. economy, supports the stock market, and lowers export prices against the backdrop of a trade war. The dollar has only given back a small portion of the cumulative gains it made between 2011 and January 2025 (the beginning of the trade war). The market's willingness to sell dollars helps alleviate the problems caused by its previous strength. That round of appreciation had become excessive, was technically overbought, and contributed to a significant widening of the current account deficit. In the first three quarters of 2025, the U.S. current account deficit 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 nothing for the U.S. government to worry about. (Jin10)