The market believes that the possibility of the Fed's rate cut has increased, and the drama of the dollar falling

Recently, the financial market has been lively, and rumors about the Fed's rate cut have spread like wildfire. 🌬️ According to LSEG Refinitiv data, the market generally believes that the probability of the Fed's rate cut by 50 basis points is close to 70%. This made investors nervous instantly, and the US dollar seemed to feel a chill and began to fall slightly. 💸

Potential impact of rate cuts

In the report, Ipek Ozkardeskaya, an analyst at UBS, pointed out: "We still firmly believe that a 25 basis point rate cut will be the best option." This is like saying: "Although we think the possibility of a rate cut is increasing, don't get too excited!" 😅

Moreover, the market's reaction to rate cuts can be said to be complex and changeable. On the one hand, rate cuts can stimulate economic growth and bring hope to investors; on the other hand, some market participants are disappointed with the 25 basis point rate cut, and some even call for a 75 basis point rate cut, which is simply "adding fuel to the fire"! 🔥

The “mood” of the US dollar

The decline of the US dollar is actually the market’s reaction to future economic trends. Investors seem to be whispering: “Oh, if the Fed really cuts interest rates, how should our investments respond?”🤔

Against such a background, the performance of the US dollar is like an emotional star, sometimes shining and sometimes eclipsed. Various voices in the market are constantly intertwined, making this “star” more charming and confusing.

In general, the market’s expectations for the Fed’s interest rate cuts are getting stronger, and the performance of the US dollar has become more complicated. As time goes by, we will continue to pay attention to this dynamic and see if there will be any unexpected surprises in the future! 🎉

So, dear investors, are you ready for this financial feast? Remember to stay calm and seize the opportunity! 💪✨