has been founded since the founding of USD Index , and has only seen a few days of falling by 2% or even more than 2%. The most intensive one occurred in , the subprime mortgage crisis in the United States in 2008. At that time, the USD Index fell by more than 2% for 5 or 6 consecutive trading days, which was spectacular.
In addition, the number of days when the US dollar index fell sharply was sporadically scattered throughout the trend. This time the decline was nearly 2%, and the market generally interpreted that the unemployment rate reflected by the release of non-farm employment data has increased compared with expectations, reducing the market's outlook for the subsequent aggressive rate hike of the Federal Reserve .
rate hikes slowed down, and the US dollar index fell. The US dollar depreciated significantly against major currencies, with the appreciation of Australian dollar , New Zealand and euro strongly, and the Australian dollar rose nearly 3% against the US dollar.
offshore RMB , which has depreciated from February this year to the present, has seen a shocking rebound, rising by more than 2% against the US dollar. Whether this is effective or not is difficult to say whether the policy of stabilizing the exchange rate is implemented in just one day's achievements. We believe that the world has suffered for a long time, and the strong US dollar is just a short-term pullback.
What supports the strength of currency must be the strength of economy and technology. In the third quarter, the US economy rose 2.6% year-on-year, and rose 1.9% year-on-year, exceeding market expectations, and foreign trade has changed from drag to active contributor in the contribution of US economic growth.
In the third quarter, my country's GDP increased by 3.9% year-on-year, achieving growth exceeding market expectations.
compares GDP growth under different interest rates environments. It is certain that this decline in the US dollar index has brought a respite to major currencies in the world. Fed rate hike is not worth worrying about. What is terrible is the weakness of economic growth. To put it in the words of experts, the downward pressure on economic growth has increased.
USD is beautiful
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We believe that following the interest rate hike is not advisable, and the economic situation does not allow it. It is only necessary to relax epidemic control at the appropriate time, which will naturally stimulate economic growth.
Once the economic growth is strong, the Federal Reserve will hike interest rates. The world has been suffering for a long time, and more and more countries are stimulating economic growth.
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