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Hello everyone, today Avatrade Aihua Foreign Exchange will bring you "[Aihua Ava Foreign Exchange Decision 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 collection of some positive and negative news that may affect the foreign exchange market on April 9, 2025:
Favorite news
U.S. economic data is expected to be positive: some forecasts show that some of the U.S. economic data to be released may perform better. For example, some institutions expect retail sales data to be released next week in the United States is expected to see growth, which may strengthen market confidence in the US dollar. Because retail sales data is an important indicator to measure the consumption capacity of the US economy, if the data is good, it means that the domestic consumer market in the United States is active and the economic growth momentum is sufficient, which will attract funds to flow into the United States, thereby promoting the appreciation of the US dollar.
European Central Bank's easing expectations have increased: Dutch International pointed out that Trump's global tariff plan may bring serious trade and confidence shocks to Europe, which has significantly increased the possibility of the ECB pushing policy interest rates further into the neutral range within two weeks. Market expectations for the European Central Bank rate cuts are heating up, which may lead to an increase in the euro zone's money supply and stimulate economic growth. From the perspective of the foreign exchange market, although interest rate cuts may be under pressure due to the narrowing of interest rate gap in the early stages, in the long run, the expectation of economic recovery will attract foreign capital inflows and provide certain support for the euro.
Emergency growth in emerging economies: some emerging economies such as India and Brazil have performed well recently. India's final avatradescn.comprehensive PMI value in March was 59.5, higher than the previous value of 58.6, indicating that India's economic activity continues to expand. Brazil's economy is also gradually recovering, and its higher interest rate levels have attracted a certain inflow of international capital. The currencies of these emerging economies may gain a certain amount of money in the foreign exchange market due to the good performance of the economy.Support, there may be a trend of appreciation avatradescn.compared to major currencies such as the US dollar.
Bold news
Worries about escalating trade disputes: US President Trump signed an announcement to impose a 25% tariff on imported cars and some parts. The China Association of Automobile Industry expressed its firm opposition to this. The escalation of trade disputes may further intensify global trade tensions, leading to a decline in market risk appetite, and investors are seeking safe-haven assets, such as the Japanese yen and Swiss franc, which may be favored, while avatradescn.commodity currencies such as the Australian dollar and the Canadian dollar may be under pressure due to the uncertainty of the trade prospects. At the same time, trade disputes may also affect the economic growth of various countries, which in turn has a negative impact on the currency exchange rates of various countries.
U.S. Treasury yields fell: U.S. 30-year Treasury yields fell to their lowest level since December last year. A decline in Treasury yields is often seen as a signal of a slowdown in economic growth expectations, which may reduce the attractiveness of dollar assets. Because investors may transfer funds from US dollar assets to other assets with higher yields in the process of pursuing returns, resulting in the weakening of the US dollar in the foreign exchange market.
Global stock market fluctuations: Large fluctuations in global stock markets will also have an impact on the foreign exchange market. For example, on April 8, A-shares fell sharply, the Shanghai avatradescn.composite Index fell below 3,100 points, the ChiNext Index fell by more than 12%, and the overall performance of Asian stock markets was poor. The decline in the stock market will reduce investors' risk appetite, and funds flow out of the stock market, looking for relatively safe assets. In this case, the flow of capital in the money market will change, affecting the supply and demand relationship of the money, and thus leading to exchange rate fluctuations. Generally speaking, when the stock market falls, funds will flow to safe-haven currencies such as the US dollar and the Japanese yen, supporting these currencies, and putting certain pressure on risky currencies such as the euro and the pound.
The above content is all about "【Ava Ava Foreign Exchange Decision Analysis】: Collection of Positive and Negative News that Influence 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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