Recently, the Federal Reserve has been dovish. Federal Reser...

Recently, the Federal Reserve has been dovish. Federal Reserve Governor Christopher Waller said this week that the current interest rate level is enough to return inflation to the 2% target level, and said that if the data continues to decline in the next 3 to 5 months, interest rates will be considered, and this will be related to whether the economy is Recession has nothing to do with it.

As soon as the dovish remarks came out, the Federal Reserve's interest rate cut expectations in 2024 rose to around 100 basis points (BP). U.S. bond yields of all maturities fell sharply overnight, dragging the U.S. dollar index down for four consecutive days on Wednesday, closing below the 103 mark. Driven by this, the international gold price soared. After breaking through 2,040 US dollars on Tuesday, it continued to rise to the 2,050 US dollars line at the opening of Wednesday. The historical high of 2,080 US dollars is just around the corner. The RMB also maintained its strength as the US dollar index weakened. This week Continuing to surge by nearly 200 points, although China’s November Purchasing Managers Index (PMI) released on Thursday was worse than expected, USD/CNY is still trading around 7.12. Institutions predict that the yuan is expected to remain strong due to seasonal factors.