The Federal Reserve directly cut interest rates by 50 basis points, and there is still a 30% chance of a further 50 basis point cut at the November interest rate meeting. This is a big step. Many Wall Street institutions have always believed that the rate will only be cut by 25 basis points. Historically, interest rate cuts of 50 basis points have only occurred three times, usually in economic or market emergencies: the technology bubble in January 2001, the financial crisis in September 2007, and the epidemic in March 2020.
The first interest rate cut in this round reached 50 basis points, and the interest rate cut in November is expected to be 50 basis points. This can only mean that the US economy has reached a critical moment and can only be stimulated by taking drastic measures. This is a good thing for the currency circle, but it is necessary to wait for the time for the good news to be realized.
The next 62,000 and 65,000 are resistance levels. After 62,000 stabilizes, it is expected to break through 65,000, but each good news is accompanied by the occurrence of bad black swan events. The US interest rate cut must have a policy in a certain field to cooperate with the US interest rate cut to continue to harvest and suppress Huazi Finance. It’s just that the time has not come yet, and we need to wait patiently. For the Biquan market, I always think that it will be a volatile downward market before January, and buying at highs is the next theme.
