The Fed will not raise interest rates The overall situation has been decided, and it is expected to

Mondo Finance Updated on 2024-01-30

Chinese peopleBanksToday the median price**, the US dollar pair, was announcedRMB exchange rateFalling back further, approaching 70 pass. With the Fed's attitude clear,Cut interest ratesExpectations are risingRMBThe momentum of appreciation is significant. This has also been the case for the past few monthsRMB exchange rate** The continued performance shows the market pairRMBOptimism of appreciation.

Although the market's expectations for the Fed are:Cut interest rates, but Fed Chair Jerome Powell did not specify when it wouldCut interest rates。InEconomyData and GlobalEconomyAs the situation changes, the Fed needs to be flexible in adjusting its policy to ensureEconomyGrowth and inflation remained stable. According to the marketAnalystsThe Fed could start in the first half of next yearCut interest ratesto alleviate itEconomyDownward pressure.

With the Fed's decision,U.S. Dollar Indexmay be affected to some extent, which will also affect:RMBagainst the US dollarExchange rateTrend. Currently, China'sMonetary policyRelatively loose, it is possible to continueCut interest ratesto stimulateEconomyIncrease. Therefore, China and the United StatesMonetary policyDifferentiation will still be there, which may be usefulRMB exchange rateMake an impact.

With the Federal ReserveCut interest ratesThe expectation of the appreciation of the renminbi is also gradually increasing. It is generally believed in the market that with the United StatesEconomySlowing growth and easing inflationary pressuresRMBagainst the US dollarExchange rateExpected further**. According to Fliggy**, by the end of next yearRMB exchange rateProbably in 65 or so.

RMBappreciation of ChinaEconomyThe impact is twofold. On the one hand,RMBAppreciation will reduce the competitiveness of export enterprises, which may have a certain impact on China's exports. On the other hand,RMBAppreciation helps to reduceImportscost, promote consumption and enhance the nationalPurchasing power。Therefore,RMBThe appreciation of the value of China's domestic consumption andImportsBusiness has a positive impact.

withRMBExpectations of appreciation have strengthened, according to some market observers, as capital inflows have accelerateda**fieldIt may rise next year. RMBAppreciation helps to improvea**fieldand bring more foreign capital inflows. Therefore,RMBof appreciation pairsa**fieldhas a positive impact.

To sum up, the Fed's decision not to raise interest rates is rightCut interest ratesThe expectation of making itRMB exchange rateThe upward trend continues. However,RMBappreciation of ChinaEconomywitha**fieldThere is still some uncertainty about the impact. AlthoughRMBmay lead to a shock to export business, but it can also help boost consumption and growtha**fieldof attractiveness. InEconomysituation and market changesRMB exchange rateThe movement of the company can be affected by a variety of factors. Therefore, it is necessary to pay close attention to the relatedEconomyData and policy adjustments can be more accurate**RMB exchange rateand its trend against ChinaEconomywitha**fieldimpact.

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