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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:
The following is a collection of positive and negative news that affected the foreign exchange market on April 21, 2025:
Related news
Breaking negative:
The US dollar fell below the 99 mark in the early trading, reaching a low of 98.88, a new low since April 2022. As nuclear negotiations between the United States and Iran have made progress, market risk aversion sentiment has eased, and demand for safe-haven for the US dollar has declined. At the same time, since US President Trump announced the full imposition of global tariffs, the trade war has led to the continued loss of confidence in the US dollar as a safe-haven asset. The US dollar fell into a weak situation last week. Although it rebounded slightly as the weekend approached, it still showed a decline overall.
A Reuters survey shows that economists believe that the possibility of a U.S. economic recession in the next 12 months has increased, which has a negative impact on the dollar. An economic recession is expected to reduce investors' confidence in U.S. assets, leading to capital outflows, and thus suppressing the dollar exchange rate.
Favorite:
According to CME's FedWatch tool, traders believe that the possibility of the Federal Reserve's interest rate cut in May has dropped to around 6%, and interest rate expectations are relatively stable, which will support the US dollar to a certain extent, alleviating the decline of the US dollar. If the market's expectations for the Fed's interest rate cut are further reduced, it will be conducive to the strengthening of the US dollar.
Related news of RMB
Favorite:
The RMB exchange rate against the US dollar showed a short-term technical rebound, with the onshore RMB rebounding to 7.2990, and the offshore RMB at 7.3020, a low from the early Aprilavatradescn.com7.42876 rebounded significantly. This is mainly affected by the easing of the Fed's expectation of interest rate hikes and the central bank's intervention. Regulators have suppressed the expectations of unilateral depreciation through mid-price guidance and market intervention, and have enhanced the market's confidence in the RMB.
Bad negative aspects:
China's slowdown in economic growth has formed an interest rate spread with the Federal Reserve's high interest rates, and the pressure of capital outflow continues. In the medium and long term, the RMB is still under pressure. If the interest rate gap between China and the United States does not reverse, the RMB may test the range of 7.5-7.8 in the future.
Europe-related news
Favorite:
The ECB announced last week that it would cut the benchmark interest rate by 25 basis points to 2.25%, the seventh rate cut in a year and has reduced borrowing costs to its lowest level since the end of 2022. Although interest rate cuts are to some extent to cope with slowing economic growth, from another perspective, a lower interest rate environment may stimulate economic growth, enhance market confidence in the euro zone economy, and thus have a certain supporting role in the euro exchange rate.
Bad front:
European zone economic growth is still relatively fragile and faces many uncertainties, such as geopolitical tensions and global trade issues. These factors may suppress the euro's upward space and put the euro against the dollar to a certain extent.
Related news of pound
Favorites:
Economic data show that Britain's economic growth remains stable, inflation slows down, and wage growth is strong, which provides certain support for the pound. The pound hit a new high of 1.3298 against the dollar last week to reach a new high of 1.3298 since early October last year, and market confidence in the pound has increased.
Bond negative aspects:
The Bank of England has different views on interest rate policy. The market expects interest rate cuts to occur in early 2025, especially as the labor market weakens, wage growth slows down and inflationary pressures lower, which may put some downward pressure on the pound exchange rate.
Japan yen related news
Favorite:
Japanese negotiator Ryo Akazawa is avatradescn.coming to clarify that the trade negotiations have not discussed the exchange rate issue, which has led the US dollar to rebound from a low of nearly 1 yen, which has played a certain stabilizing role in the Japanese yen exchange rate.
Bond of negative aspects:
Bank of Japan Governor Kazuo Ueda said that if potential inflation accelerates to approach the 2% target as scheduled, the Bank of Japan will continue to raise interest rates. Although this remark shows to a certain extent the Bank of Japan's concern about the economy and inflation, it also triggers market concerns about the Japanese economic recovery process and may put some pressure on the yen exchange rate.
The above information is avatradescn.compiled from public content and does not constitute investment advice. The foreign exchange market is affected by a variety of factors. Investors need to pay close attention to the global economic situation, central bank policies, geopolitics and other trends, and make investment decisions with caution.
The above content is about "【Ava Aihua Foreign Exchange】: Influence foreignThe full content of "The Good and Bad News Collection of the Exchange Market" was carefully avatradescn.compiled and edited by the Avatrade Forex editor. I hope it will be helpful to your transaction! Thank you for your support!
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