The impact of the interest rate cut policy on the currency market and its investment implications💥💥💥
Cutting interest rates usually means an increase in the money supply, commonly known as "watering down". This kind of policy often leads to an increase in commodity prices, and commodity prices and stock prices usually show a seesaw pattern, which may trigger the flow of funds to other investment areas, such as the currency circle.
When the U.S. dollar cuts interest rates, funds may flow to developing countries, and stocks in the lending countries may fall. This flow of funds provides liquidity to emerging markets such as the currency circle, which may drive their prices upward.
The rise and fall of prices in the currency circle are significantly affected by large capital flows. When big money is bought, the price of the currency circle rises; when big money is sold, the price falls. Therefore, in the context of interest rate cuts, if large funds flow into the currency circle, it will directly drive up its price.
Macroeconomic changes have a profound impact on financial markets. If you want to make profits in the financial industry, you must pay attention to and understand macroeconomic changes, including the impact of interest rate cuts and other monetary policies on asset prices.
