Normally, U.S. stocks rise first, and then the currency circle rises. When the market falls, the currency circle will be affected first, and then the currency circle will be affected first. However, there have been some strange phenomena in the market recently: U.S. stocks have skyrocketed, and the three major indexes have even returned to their lowest levels. The high point before the interest rate hike, but the currency circle did not show an obvious rise. This may be due to the market's concern that although non-core inflation has fallen back below 4%, core inflation in the United States is still relatively high, which may lead investors to invest funds in safer haven assets and lead to a rise in U.S. stocks.
The current market situation is quite special, with both the risk index and anti-risk index rising. U.S. stocks rose, the price of gold also exceeded $2,000, and funds seemed to be driving financial markets. However, the currency circle did not show an obvious upward trend. This can lead to a relatively small market size in the currency circle. Only when there is excess market liquidity will funds flow to the currency circle. Therefore, funds in the current market may also promote the rise of the currency circle, which is why the currency circle neither rises nor falls.
Although the market shows some peculiarities, we should still remain nervous and patient. Don't pay attention to the rise in other risk targets and ignore the current performance of the currency circle. It should be noted that the Federal Reserve has not cut interest rates in its upcoming channel for raising interest rates. Interest rates may be cut in the future, and interest rates will remain at a high level, and the interest rate reduction cycle may take some time. In a high interest rate environment, the market may face some challenges. Therefore, even before making a decision, you must remain calm when investing, avoid frequent actions, and wait for opportunities to come.