Market analysis: The market is selling the US dollar, not selling the US.

Market analyst Jeremy Boulton stated that traders are selling the US dollar, but not selling the US itself. US Treasury bonds remain stable, while the stock market has surged to a historical high. The stability of the bond market indicates that there is almost no, or very minimal, substantive concern about the economy. From this perspective, the weakening US dollar is good news for the Trump administration, as it stimulates the US economy, supports the stock market, and lowers export prices amidst the backdrop of a trade war. The US dollar has only retraced a small portion of its cumulative gains from 2011 to January 2025. The willingness of the market to sell the US dollar helps alleviate the problems brought about by its earlier strength. That round of appreciation has been seen as excessive, with technically being overbought and leading to a significant increase in 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 US dollar continues to weaken, the deficit may further shrink. Overall, although the US dollar has retraced some of its strength, there is little need for concern for the US government.