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Hello everyone, today Avatrade Aihua Foreign Exchange will bring you "【Avatradescn Forex Official Website】: 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:
The following is a collection of positive and negative news that affects the foreign exchange market on April 2, 2025:
Related news in the United States
Tariff impact: Trump said he will announce reciprocal tariffs on April 2. The market is worried that this will trigger a new round of trade frictions and have a negative impact on the global economy. From the perspective of the foreign exchange market, this may lead to a warming of risk aversion sentiment and flowing to safe-haven currencies such as the US dollar, but if tariff measures are less than expected, it may also trigger a pullback in the US dollar.
Interest rate expectations: According to CME's "Feder Observation", the probability of the Federal Reserve keeping interest rates unchanged in May is 83.7%, and the probability of cutting interest rates by 25 basis points is 16.3%. Overall, the market's expectations for the Fed's interest rate cut in the short term are not strong, which has a certain supportive effect on the US dollar. However, in the long run, if the US economic data continues to weaken, it may change the market's expectations for the Fed's interest rate policy and then suppress the US dollar.
Related News from Europe
Economic Data and Policy: ECB Management avatradescn.committee Stunaras said that it is still expected that there will be two interest rate cuts in 2025, with a terminal interest rate of 2%. This dovish remark shows that the ECB will continue to maintain loose monetary policy to stimulate economic growth, which is a negative for the euro and may cause the euro to weaken.
Trade friction concerns: As the United States is about to announce reciprocal tariffs, the market is worried that Europe will be affected. European avatradescn.commission President von der Leyen said the EU has a strong countermeasure plan and will be implemented if necessary. But this uncertainty still puts pressure on the euro, which may fall further if trade frictions escalate.
Related News from the UK
Inflation and interest rate expectations: UK inflation fell in February, the UK CentralExpectations of interest rate cuts in May have heated up. This shows that the British economy is facing certain downward pressure, inflation levels fail to meet expectations, and the market expects the Bank of England to take rate cuts to stimulate the economy, which is not good for the pound and may lead to a decline in the pound exchange rate.
Other news
Canadian dollar strengthened: As of 05:00 on April 2, the Canadian dollar against the US dollar exchange rate in the foreign exchange market exceeded 1 Canadian dollar to exchange US$0.6987, an increase of 0.5584%. This may be related to changes in Canadian domestic economic data or market expectations, or may be affected by the overall trend of the US dollar.
RBA expects: The RBA may suspend interest rate cuts in April, and the market is betting on a May cut. This makes the Australian dollar trend uncertain. If the interest rate cut in April is not avatradescn.com, it may have some support for the Australian dollar in the short term, but the expectation of a interest rate cut in May limits the Australian dollar's upside potential.
The above content is avatradescn.compiled based on public information and does not constitute investment advice. The foreign exchange market fluctuates frequently, and investors need to pay close attention to various news in order to make reasonable investment decisions.
The above content is all about "【Ava Aihua Foreign Exchange Official Website】: Collection of Positive and Negative News that Influences the Foreign Exchange Market". It was carefully avatradescn.compiled and edited by Aihua Avatrade Foreign Exchange Editor. I hope it will be helpful to your trading! Thanks for the support!
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