About the ECB's rate cut. I personally want to define this ECB rate cut as: a hawkish rate cut.
Although the rate cut was 25 basis points as expected by the market, there were hawkish statements after the meeting, and statements that the Fed over-reliant on the independence of regional central banks.
1. Denying a rapid rate cut and entering a rate cut cycle too early.
2. Retaining an attitude that inflation has not slowed down in the future, and not giving clear guidance on rate cuts.
The reason is: fearing that the Fed will harvest too much, and doing expectation management to prevent capital outflows, I cut first, and you, the Americans, will not cut.
Therefore, the hawkish statement led to a decline in the US dollar index and a rise in the capital market. The ECB cuts interest rates and is about to release water, and the copycat season is here.
