The key depends on whether the crisis has affected this country and this currency! And the economic strategic intentions of the world's most powerful economy at that time!

The fundamental factors that affect each country's currency< /p>

Fundamental factors affecting the U.S. dollar

Federal Reserve Bank (Fed): The Federal Reserve Bank of the United States, referred to as the Federal Reserve, the central bank of the United States, formulates monetary policy completely independently to ensure that the economy achieves maximum degree of non-inflationary growth. The Fed's main policy indicators include: open market operations, discount rate (Discount Rate), and federal funds rate (Fed Funds rate).

Federal Open Market Committee (FOMC): The Federal Open Market Committee, the FOMC is mainly responsible for formulating monetary policy, including formulating eight key interest rate adjustment announcements each year. The FOMC*** has 12 members, consisting of 7 government officials, the president of the New York Federal Reserve Bank, and 4 members elected for one-year terms from the presidents of the other 11 local Federal Reserve banks.

Interest Rates: Interest rate, namely Fed Funds Rate, is the most important interest rate indicator and is also the overnight lending rate for mutual loans between savings institutions. When the Fed wants to send a clear monetary policy signal to the market, it will announce a new interest rate level. Each such announcement causes major turmoil in stock, bond and currency markets.

Discount Rate: The discount rate is the interest rate charged by the Fed when commercial banks apply for loans from the Fed due to emergency situations such as reserve funds. Although this is a symbolic interest rate indicator, its changes can also convey strong policy signals. The discount rate is generally less than the federal funds rate.

30-year Treasury Bond: The 30-year Treasury bond, also called a long-term bond, is the market's most important indicator of inflation. In most cases, the market uses the bond's yield rather than its price to measure the grade of a bond. Like all bonds, the 30-year Treasury bill has a negative correlation with prices. There is no clear link between long-term bonds and the U.S. dollar exchange rate, but generally there is the following link: because a fall in bond prices due to inflation, that is, a rise in yields, may put pressure on the U.S. dollar. These considerations may be caused by some economic data.

However, with the implementation of the U.S. Treasury Department’s “borrow new debt to repay old debt” plan, the issuance of 30-year Treasury bills began to shrink, and then the status of the 30-year Treasury bill as a benchmark began to give way to 10-year Treasury bill.

According to different stages of the economic cycle, some economic indicators have different impacts on the U.S. dollar: when inflation does not become a threat to the economy, strong economic indicators will support the U.S. dollar exchange rate; when inflation affects the economy When the threat is more obvious, strong economic indicators will suppress the U.S. dollar exchange rate, and one of the means is to sell bonds.

As a benchmark for asset levels, long-term bonds are generally affected by global capital flows. Financial or political turmoil in emerging markets will push up U.S. dollar assets. At this time, U.S. dollar assets, as a hedging tool, will indirectly push up the U.S. dollar exchange rate.

3-month Eurodollar Deposits: 3-month Eurodollar deposits. European dollars refer to U.S. dollar deposits deposited in foreign banks in the United States. For example: Japanese yen deposits deposited in foreign banks in Japan are called "European yen". This difference in deposit rates can serve as a valuable benchmark for evaluating foreign exchange rates. For example, taking USD/JPY as an example, the greater the positive difference between European U.S. dollars and European yen deposits, the more likely it is that the USD/JPY exchange rate will be supported.

10-year Treasury Note: 10-year Treasury bill. When we compare the yields on the same types of bonds across countries, we generally use the 10-year Treasury bill. Differences in yields between bonds affect exchange rates. If the yield on U.S. dollar assets is high, it will push up the U.S. dollar exchange rate.

Treasury: Ministry of Finance. The U.S. Treasury Department is responsible for issuing government bonds and formulating the fiscal budget. The Treasury Department has no say in monetary policy, but its comments on the U.S. dollar may have a greater impact on the U.S. dollar exchange rate.

Economic Data: Economic data. Among the economic data published in the United States, the most important include: labor force report (pay level, unemployment rate and average hourly earnings), CPI (Consumer Price Index), PPI, GDP (gross domestic product, gross domestic product) , international trade levels, industrial production, housing starts, housing permits and consumer confidence.

Stock Market: Stock market.