What impact will the Euro rate cut on June 6 have on our currency circle?
1. A new round of world currency war is about to start. Europe is cutting interest rates dramatically. The US dollar is appreciating at this time. In the first interval, we may see that the capital market is under pressure for a period of time. The liquidity released by the Eurozone may continue to run to the big beautiful.
So there will be two major time zones in the future. The first stage is the Euro rate cut and the US dollar is stable. The second stage is the Euro and the US dollar cut interest rates at the same time. No matter which time it is, it is the end of the global interest rate hike. Historical experience has proved that often in this period of time, whether it is the global currency market or geopolitics, it is turbulent;
2. Once the interest rate cut cycle begins, enterprises will also regain vitality. The interest rate cut may release part of the market liquidity, and part of the funds will begin to flow into the market. The economy will begin to recover further, and the operating rate of enterprises will further increase.
At this time, the demand of the people for commodities and enterprises for commodities is often pushed up, so recently, the Federal Reserve's Federal Reserve Company also stated that they do not need to wait until inflation is close to 2% before they can start the interest rate cut cycle;
3. What do we mean by interest rate cuts?
Whether it is the US market or the European market, interest rate cuts. Once the interest rate cut cycle begins, market liquidity begins to increase, and non-US markets begin to gradually become active.
