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 towards the big beautiful. Therefore, 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 together. 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, both the global currency market and geopolitics are turbulent;
2. Once the interest rate cut cycle begins, companies 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 companies will further increase. At this time, the demand for commodities by the people and the demand for commodities by companies are often pushed up. Therefore, 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, the liquidity of the market begins to increase, and the non-US market begins to gradually become active.
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