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Hello everyone, today Avatrade Aihua Foreign Exchange will bring you "【Avatradescn】: Collection of positive and negative news that affects the foreign exchange market". Hope it will be helpful to you! The original content is as follows:
In the avatradescn.complex ecology of the foreign exchange market, various news always affects exchange rate fluctuations and affects investors' decisions. On March 10, 2025, looking back on recent market trends, a series of positive and negative news intertwined, jointly shaping the pattern of the foreign exchange market.
Policy dynamics have caused market turmoil
Recently, many state-owned banks such as Agricultural Bank of China, Industrial and avatradescn.commercial Bank of China, Bank of China, and Construction Bank have announced the upgrade of personal foreign currency currency exchange services, implementing the same price of banknote exchange and no exchange conversion price difference. This move is a great benefit for personal foreign exchange business. From a personal perspective, the cost of handling foreign exchange business is reduced, and whether it is studying abroad or traveling, it can save a lot of money. Taking studying abroad as an example, in the past, a certain price difference was required to convert cash into cash. Now, after the policy was implemented, this part of the expenses can be reduced. For banks themselves, it will help attract more customers to handle foreign exchange business, enhance customer stickiness, optimize foreign exchange business structure, and improve overall service capabilities. In the long run, it will also promote the standardized development of the foreign exchange market. This policy change has injected new vitality into the personal business field of the foreign exchange market and enhanced the market activity.
Economic data reveals market trends
February economic data released by the National Bureau of Statistics showed that CPI fell by 0.7% year-on-year (previous value 0.5%, estimated -0.5%), and PPI fell by 2.2% year-on-year (previous value -2.3%, estimated -2.1%). The CPI turned from rising to falling year-on-year, mainly due to factors such as the high avatradescn.comparison base in the same period last year due to the mismatched month of the Spring Festival, the weather in February is conducive to the growth and transportation of fresh vegetables, and the price reduction and promotion of automobiles and other avatradescn.commodities. Excluding the impact of the Spring Festival’s mismatched month, CPI continued to rise year-on-year. Economic dataThe changes have a significant impact on the foreign exchange market. The downward trend of CPI and PPI reflects to a certain extent the deflationary pressure faced by the domestic economy, which may cause fluctuations in the market's expectations for the RMB exchange rate. If the market expects economic growth to slow down, it may reduce the demand for the RMB, thus putting certain downward pressure on the RMB exchange rate.
The international situation affects market confidence
The Tariff avatradescn.commission of the State Council announced that from March 20, 2025, tariffs will be imposed on some imported goods originating in Canada. Among them, 100% tariffs will be imposed on rapeseed oil, oil residue cakes and peas; 25% tariffs will be imposed on aquatic products and pork. The escalation of trade frictions often triggers an increase in risk aversion in the market. In the foreign exchange market, this risk aversion may cause funds to flow to traditional safe-haven currencies, such as the US dollar, the Japanese yen, etc. For enterprises with frequent trade in related avatradescn.commodities involved in tariff imposition, their foreign exchange receipts and expenditures may be affected, which in turn affects foreign exchange demand and supply at the enterprise level, and has an indirect impact on the exchange rate of related currencies.
The central bank data brings changes in market expectations
The data from the People's Bank of China show that gold reserves were 73.61 million ounces (about 2289.53 tons) at the end of February, an increase of 160,000 ounces (about 4.98 tons) month-on-month, increasing holdings of gold for the fourth consecutive month. As of the end of February 2025, my country's foreign exchange reserves were US$322.72 billion, up 18.2 billion from the end of January, an increase of 0.57%. The central bank's increase in holdings of gold shows that it has adjusted its asset allocation structure. As an important reserve asset, its increase in holdings may reflect considerations of global economic uncertainty. The increase in the scale of foreign exchange reserves shows the stability of my country's balance of payments. These data will affect the market's expectations of the stability of the RMB exchange rate, enhance the market's confidence in the RMB, and support the RMB exchange rate to a certain extent.
Global central banks and economic outlook affect foreign exchange market
In terms of the Federal Reserve, the non-farm employment population in the United States increased by 151,000 after the quarterly adjustment in February, lower than the market expectations of 160,000. The January data was revised down from 143,000 to 125,000, and the unemployment rate unexpectedly rose to 4.1%. Even so, Powell said the Federal Reserve is ready to keep interest rates unchanged. This statement has made the market's expectations of the US dollar interest rate trend relatively stable, but the lower-than-expected non-agricultural data also imply that the US economic growth may face certain pressure, which is a situation of interweaving bulls and bears for the US dollar. From the perspective of the international energy market, fluctuations in the crude oil market will also have an impact on the foreign exchange market. For example, the rise in oil prices may drive the appreciation of the currencies of oil exporters, while the currencies of oil importers may bring depreciation pressure. Barclays analysts said that unless the U.S. economic data deteriorates further, the euro is unlikely to appreciate further sharply against the U.S. dollar, and market sentiment has turned sharply to be positive for the euro and negative for the U.S. dollar. If the U.S. economic data to be released is more optimistic, most of the euro's upward gains may have passed. This reflects global economic data and the https://avatradescn.comThe avatradescn.complex impact of central bank policies on exchange rates of different currencies.
In general, on March 10, 2025, the foreign exchange market was affected by a variety of factors, and positive and negative news coexisted. Investors need to pay close attention to various news trends and make investment decisions cautiously.
The above content is all about "【Ava Aihua Foreign Exchange】: Collection of positive and negative news that affects the foreign exchange market". It was carefully avatradescn.compiled and edited by the Aihua Avatrade Foreign Exchange editor. I hope it will be helpful to your trading! Thank you for your support!
Due to the author's limited ability and time tightness, some of the content in the article still needs to be discussed and studied in depth. Therefore, in the future, the author will conduct extended research and discussion on the following issues: