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Hello everyone, today Avatrade Aihua Foreign Exchange will bring you "[Aihua 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 affected the foreign exchange market on April 28, 2025:
Related news
Bearning factors: The "reciprocal tariff" policy previously announced by the US government has caused significant fluctuations in the global financial market. Although there are news that trade negotiations are progressing smoothly and 15 countries have submitted agreement plans, the uncertainty of tariff policies still exists, which puts some pressure on the US dollar. Market expectations for the Fed's interest rate cut are also rising, and the futures market has already priced at a 37% chance this year, with the Fed going down four interest rates, which makes the US dollar's attractiveness somewhat.
Favorites: There is no obvious positive news to support the US dollar. However, as the world's major reserve currency, the US dollar still has a relatively stable position in the international financial system. When market uncertainty increases, it will still attract some safe-haven funds to flow in.
Related news from RMB
Bold factors: As of the early April 28, 2025, the offshore RMB exchange rate was 7.29380, which was a fraction higher than the onshore exchange rate of 7.29085, indicating that the international market is cautious about the short-term sentiment of the RMB. Although there is momentum of domestic economic recovery, consumption and real estate are still dragging down items, and the market's expectations for growth fluctuate, which puts certain pressure on the RMB exchange rate in the foreign exchange market.
Positive factors: The People's Bank of China conducts "counter-cyclical adjustment" through operations such as stability of the intermediate price, which releases a signal that the RMB exchange rate can fluctuate but will not get out of control, which will help stabilize the RMB exchange rate expectations. For example, the central bank carried out reverse repurchase operations, etc., to provide liquidity support to the market and provide certain support for the RMB exchange rate.
Euro-related news
Badfast factors: There are no particularly obvious negative news yet. However, the eurozone economy also faces some challenges, such as uncertainty in the global economic situation and trade frictions, which may have an impact on its exports and indirectly affect the euro exchange rate.
Positive factors: The possibility of the ECB cutting interest rates in June increases, which will to a certain extent enhance the market's upward action energy towards the euro. The market expects interest rate cuts to stimulate economic growth and enhance the economic outlook of the euro zone, thereby having a positive impact on the euro exchange rate.
Japan yen related news
Bond negative factors: The Bank of Japan has sent a dovish signal, and economic growth expectations are facing a lowering, which has a certain suppression effect on the yen exchange rate. If economic growth slows down, it will affect the market's confidence in the yen, leading to capital outflows, and then depreciating the yen.
Favoritative factors: The inflation rate in April was higher than expected, which allowed the yen to continue its appreciation. Higher inflation rates may prompt the Bank of Japan to adopt a more aggressive monetary policy, which will increase the attractiveness of the yen.
Canadian related news
Badfast factors: Canadian retail sales decline, which shows that the Canadian domestic consumer market is performing poorly, which may affect the trend of the Canadian dollar. Consumption is one of the important driving forces for economic growth. The decline in retail sales means insufficient momentum for economic growth, which has a negative impact on the Canadian dollar.
Favorites: There is no direct news for the Canadian dollar. However, as a resource-based country, if Canada shows signs of recovery in the global economy, the increase in demand for its resource products will be beneficial to the Canadian dollar exchange rate.
Related news of GBP
Bond negative factors: The Bank of England announced the cancellation of next week's long-term Treasury bond sales, which may imply that the UK government's demand for long-term Treasury bonds has changed, which has a certain impact on the GBP exchange rate. Changes in supply and demand relationships of long-term Treasury bonds will affect market interest rates, which in turn will affect the attractiveness of the pound.
Positive factors: Long-term government bond pressure is expected to ease, which will reduce the debt burden of the British government and have a certain stabilization effect on the pound exchange rate. At the same time, if the UK's economic data performs well, it will also support the pound.
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