Historically, when the cut is higher than expected: Markets drop instantly due to the shock of the surprise… Then they start to rise after liquidity absorbs the decision and reprices.
The point I want to get across to you: The market doesn’t move based on the number itself… The market asks: Why 50 and not 25? And if the cut is bigger than expected, it often means the economy is struggling more than what’s being reported.
So, the movement isn't about the “joy of a cut” But rather about “trying to understand the reason.”
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Everyone is expecting a 25 basis point cut…
But what if the cut is 50 points?
Historically, when the cut is higher than expected:
Markets drop instantly due to the shock of the surprise…
Then they start to rise after liquidity absorbs the decision and reprices.
The point I want to get across to you:
The market doesn’t move based on the number itself…
The market asks: Why 50 and not 25?
And if the cut is bigger than expected, it often means the economy is struggling more than what’s being reported.
So, the movement isn't about the “joy of a cut”
But rather about “trying to understand the reason.”