Market bearish sentiment is deeply rooted, and the continued depreciation of the dollar shows no signs of bottoming out

A recent market analysis reveals an interesting paradox: despite strong U.S. employment data and a resilient labor market, the dollar continues to come under pressure and decline. This phenomenon indicates that bearish expectations for the dollar have already formed a strong cognitive foundation in the market, enough to offset traditional fundamental signals that typically support the dollar.

Strategic analysts point out that this bearish wave poses a serious challenge to views that rely on a robust U.S. economy for support. In other words, good economic data alone are no longer sufficient to reshape the market’s perception of the dollar.

From a historical perspective, the current decline of the dollar is not particularly deep. This means that if the market’s bearish sentiment continues to ferment without any substantial change, there may still be room for further dollar depreciation. The key question becomes: when will the consensus of bearishness be broken?