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Hello everyone, today Avatrade Aihua Foreign Exchange will bring you "[Aihua Ava Foreign Exchange Market Analysis]: 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 must-read for trading on April 8, 2025. A collection of positive and negative news about the positive and negative impact on the foreign exchange market:
U.S. tariff policy triggered a chain reaction
Badvantage US dollar: On April 2 local time, Trump signed an executive order of "reciprocal tariffs", setting a 10% "minimum benchmark tariff" and imposing higher tariffs on some countries. This strengthens the prospects for transatlantic trade frictions, and market expectations for a slowdown in the U.S. economy have increased, resulting in a sharp decline in the US dollar index in recent days. On April 7, the European avatradescn.commission has proposed to impose a 25% tariff on some U.S. goods in retaliation against the Trump administration's tariffs on steel and aluminum. This further exacerbated trade tensions and continued suppression of the US dollar.
Benefits safe-haven currencies: Intensified trade war has sparked concerns about a global recession, and investors' risk aversion sentiment has heated up. As a traditional safe-haven currency, the yen has driven a short-term rise. During the Asian session on April 7, the US dollar fell below the key support level against the Japanese yen, showing the strength of the Japanese yen.
Economic data and central bank policy
New Zealand's central bank's interest rate cut is negative for the New Zealand dollar: Market research shows that the central bank of New Zealand (RBNZ) will lower the official cash rate by 25 basis points to 3.50% in Wednesday, April 9, and has cut interest rates by 175 basis points since August last year. The market expects the OCR to fall to a lower level by the end of the year. This expectation of interest rate cuts puts the New York dollar under depreciation pressure. During the Asian period on April 7, the Australian dollar/USD suffered a plunge, which to a certain extent reflects the market's pessimistic attitude towards Oceanian currencies.
The increase in China's foreign exchange reserves is good for RMB expectations: On April 7, statistics from the State Administration of Foreign Exchange showed that as of 3 in 2025At the end of the month, China's foreign exchange reserves were US$324.07 billion, up 13.4 billion from the end of February, an increase of 0.42%. This shows that the stability of China's foreign exchange reserves has increased, providing a solid foundation for the stability of the RMB exchange rate. In the long run, it will help increase the market's confidence in the RMB.
Other news affecting the foreign exchange market
Brexit-related uncertainty is still bad for the pound: Although the pound/USD attracted some dips after hitting a more than one-month low during the Asian trading session on April 7, due to the pressure on the global economic outlook and the subsequent impact of Brexit, the upward space of the pound is limited, and it still faces certain depreciation pressure in the medium term.
The impact of Japan's fiscal year budget adoption is limited: the Japanese parliament passed the 2025 fiscal year budget on March 31, with a total budget of 115.1978 trillion yen, a record high. The defense budget has also increased in the new fiscal year, but the impact of this news on the yen is relatively limited. Under the avatradescn.combined effect of factors such as risk aversion sentiment and Bank of Japan policy expectations, the yen's trend is more driven by external risk events.
The above content is avatradescn.compiled based on public information and does not constitute investment advice. Investors need to pay close attention to the further development of these news when conducting foreign exchange transactions in order to make reasonable investment decisions.
The above content is all about "[Ava Ava Foreign Exchange Market Analysis]: Collection of Positive and Negative News that Influences the Foreign Exchange Market". It was carefully avatradescn.compiled and edited by the Avatrade Foreign Exchange Editor. I hope it will be helpful to your trading! Thanks for the support!
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