Daily K-line chart comparison shows that it ultimately failed to break through directly and pulled back to around 88,000.
Currently fluctuating near 90,000. There is almost no doubt that the Fed will cut rates by 25 basis points next week, and similarly, the probability of a Bank of Japan rate hike the week after is also high. With one cut and one hike, carry trade returns will drop significantly. This will force investors to sell US stocks and convert back to yen to repay debts, with tech and growth stocks favored by carry trade funds being hit first. US rate hikes remain the biggest uncertainty. Once resolved and a short-term low appears, opportunities will arise. This month is likely to continue bottom-range consolidation.
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Daily K-line chart comparison shows that it ultimately failed to break through directly and pulled back to around 88,000.
Currently fluctuating near 90,000.
There is almost no doubt that the Fed will cut rates by 25 basis points next week, and similarly, the probability of a Bank of Japan rate hike the week after is also high. With one cut and one hike, carry trade returns will drop significantly.
This will force investors to sell US stocks and convert back to yen to repay debts, with tech and growth stocks favored by carry trade funds being hit first.
US rate hikes remain the biggest uncertainty. Once resolved and a short-term low appears, opportunities will arise. This month is likely to continue bottom-range consolidation.