The weakness of the US dollar is deeply rooted, and strong non-farm payroll data cannot reverse the situation.

According to Jinjing Report, despite the recent strong performance of the U.S. labor market, it still seems insufficient to support a rebound in the dollar. Corpay strategist Carl Shamoto pointed out that market bearish expectations for the dollar are deeply entrenched, even warning investors who bet on a strong U.S. economic outlook. This phenomenon reflects an interesting market paradox: strong employment data should benefit the dollar, but market sentiment clearly carries more weight.

Why Strong Non-Farm Payrolls Can’t Stop the Dollar from Falling

The performance of the U.S. job market doesn’t follow the usual script. By historical standards, the dollar’s decline so far remains moderate, but this is only superficial. The real issue is that pessimistic expectations for the dollar’s outlook are deeply rooted, forming a powerful bearish consensus. Even signals from the Federal Reserve to maintain current policies are unlikely to shake this entrenched market consensus.

Market Sentiment Shift Is Key to Changing the Situation

The current key is whether the dollar can reverse its downward trend depends on a shift in market sentiment. As long as the deeply ingrained bearish outlook remains unchanged, the dollar still has room to decline further. This reminds investors that sometimes strong fundamentals don’t necessarily overcome collective market psychology. Ultimately, the future trend will depend on when market perceptions of the dollar can find a new balance.