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

According to market analyst Jeremy Boulton, traders are selling US dollars but not selling America. US Treasury bonds remain stable, while the stock market has soared 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 US dollar is good news for the Trump administration, as it stimulates the US economy, supports the stock market, and lowers export prices amid the trade war. The dollar has only given back a small portion of the gains accumulated 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 US 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 relinquished some of its strength, there is little for the US government to worry about. (Jin10)