Live Updates > Live Update Details
2025-08-01 21:51:50
[Non-farm payroll data triggers short-covering: Has the dollar bottomed out and rebounded?] ⑴ The US dollar experienced a sharp sell-off following the release of the US jobs data. ⑵ Such rapid price fluctuations are often based on shaky foundations. ⑶ The dollar's rally prior to the release of the non-farm payroll data was already excessive, and the market needed a correction. ⑷ This sell-off quickly corrected the dollar's previously overbought position. ⑸ The key issue now lies in trader positioning, which likely involves significant short positions in the US dollar. ⑹ This suggests that these shorts will need to cover their positions, triggering buying and supporting the US dollar. ⑺ Despite the weak non-farm payroll data, the dollar's oversold condition and the demand for short covering may indicate that its short-term downward momentum is weakening.
