In December, the directions of the two interest rate decisions are completely opposite, which is quite interesting!
The core message is: The impact of Japan's rate hike may overshadow the benefits of the Federal Reserve's rate cut!
Key information from the two decisions
On the 10th, the Federal Reserve meeting: A rate cut is almost a done deal!
The Federal Reserve observation tool shows over 85% probability, market expectations are fully priced in
A rate cut can release liquidity, which should be beneficial for the market
On the 19th, the Bank of Japan meeting: May potentially sing a contrary tune with a rate hike!
The governor has hinted recently, and the signal is very clear
A rate hike will cause yen carry trades to withdraw, with a large amount of funds flowing back to Japan, putting pressure on the market
An awkward situation: benefits are discounted, and negatives are magnified
The Federal Reserve wants to “sweeten the deal” (release liquidity), but Japan’s rate hike is “swinging a knife” (funds flowing back) → The knife is sharper than the sugar!
Wait for the dust to settle on the 19th's Japanese rate hike, it is highly likely to continue declining for a while!
I will notify you first in the chat room below when there are suitable operation opportunities!! Keep up with the rhythm and don’t fall behind!!
Continuously pay attention: $1000LUNC $LIGHT $XNY
