This question has been discussed several times, but more can be said. There are many reasons for the rise and fall of the US dollar index DXY, but for investors, understanding the two most critical factors is enough: The decline of the US dollar is due to the depreciation caused by economic recession or downturn. 2. The depreciation of the US dollar due to the shift towards loose monetary policy in the United States. In the first scenario, although the US dollar depreciates, it does not necessarily mean that investors' risk appetite will increase, but rather because they are concerned about the US economy. At this time, investors may not even be willing to invest in US bonds. The depreciation of the US dollar in the second scenario represents an increase in investors' risk appetite, as the yield of the US dollar has already declined. Saving US dollars to buy US bonds is more like chicken ribs, so people are more willing to invest in risky assets. At present, we are in a mixed stage of the first and second types, but we are more inclined towards the first type. More investors are concerned about the problems in the US economy and hope to seek better safe haven assets. However, if there is a real economic recession, the risk market may also decline when the US dollar falls. In the stage of economic recession, if the Federal Reserve has not fully cut interest rates, or if there is a significant increase in overseas sales of US bonds and supply of US bonds, it may also see a passive rise in long-term yields. The decline of the US dollar index is not always bullish, the key is whether it is an expectation of future prosperity or a fear of recession. PS： If the economic downturn in Europe becomes more severe, even if the United States is not doing well, the US dollar may still be "relatively stronger" and DXY may not fall. This tweet is sponsored by @ ApeXProtocolCN | Dex With Apex