Former Goldman Sachs strategist: The logic behind the US dollar’s ten-year rise is facing a reversal, and positive “non-farm payroll” data may turn into a negative factor

PANews, February 20th—According to Jinse Finance, former Goldman Sachs strategist Robin Brooks believes that the decade-long trend of the US dollar rising on stronger-than-expected US monthly non-farm payroll data is about to end, marking an “institutional shift” where traders will sell the dollar when US labor market data is strong. He stated that the market expects the Federal Reserve to cut interest rates, and if the Fed adopts policies to cap long-term nominal yields, strong non-farm data could lower real yields, weaken the appeal of US assets, and ultimately lead to a weaker dollar. Brooks said: “There may be skepticism in the market about Trump’s policies because they have always been erratic and unpredictable. The Federal Reserve has also been repeatedly attacked.” He was referring to President Trump’s repeated calls for the central bank to cut rates. He added: “All measures are aimed at lowering interest rates, and I think that’s exactly what the market is subconsciously considering.” As evidence of this phenomenon, the stronger-than-expected January employment report released on February 11 had almost no boosting effect on the dollar, and in fact, produced the opposite effect.