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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:
In the foreign exchange market, various news intertwined, continuing to affect the trend of the currency. On March 20, 2025, the following positive and negative news are worthy of investors' attention.
Favorite news
Related positive news
Recently, the RMB has shown a positive trend. On March 18, the offshore RMB rose for three consecutive trading days, rising to around 7.22. As of 17:00, the offshore RMB exchange rate against the US dollar was 7.2242, with an intraday appreciation of 0.05%; the onshore RMB exchange rate against the US dollar closed at 7.2216 at 16:30, up 172 points from the previous trading day. Since March, the US dollar index has fallen significantly, and the RMB has continued to strengthen, recovering from the 7.3 mark to around 7.22. There are many factors behind this, including the poor performance of the US economy and stock market, which has shaken the foundation of the "American exceptionalism", and global capital no longer bets on the US stock market alone; "tariff fatigue" backfires against the US dollar, the Federal Reserve's expectation of interest rate cuts has been strengthened again, and Trump's policy weakens the US dollar's credit. At the same time, from the perspective of the US dollar cycle, the US dollar has entered a downward adjustment stage, while China's capital market and real estate market have become warmer, and China's asset investment cost-effectiveness is becoming increasingly prominent, attracting more and more overseas capital inflows. Data on bank foreign exchange settlement and sales and foreign payments on behalf of customers in February 2025 released by the State Administration of Foreign Exchange show that foreign capital net increase in domestic bonds and stocks totaled US$12.7 billion, which is a aihuaforex.combination of supply and demand balance in the foreign exchange market and market confidence.RMB provides support.
The optimization of foreign exchange services is beneficial to the market
On March 18, the Lishui Branch of the State Administration of Foreign Exchange and the Municipal Bureau of aihuaforex.commerce jointly cooperated with the governments of Yunhe and Jinyun to set up foreign exchange service workstations in the local business departments. The workstation integrates government and bank resources and directly delivers foreign exchange policy consultation, exchange rate risk aversion guidance, cross-border settlement services, etc. to the grassroots level, effectively opening up the "last mile" of foreign exchange services. Through the "monthly rotating office" model and the "1+4 flexible office" mechanism, ensure continuous service. It also opens a "online + offline" fast channel for high-level opening-up pilot enterprises, simplifies the document review process, significantly shortens the cross-border settlement processing time of foreign trade enterprises, and promotes the sustained and healthy development of the foreign trade economy, which is conducive to the activity of the foreign exchange market in the long run.
Bold news
Feder related negative news
The Federal Reserve has maintained interest rates unchanged in its recent decisions and lowered its expectations for US economic growth. The median estimate of the Fed's dot chart shows that it will cut interest rates by a total of 50 basis points this year. Although US stocks continued to rise after Powell's speech and the Dow Jones rose 450 points, the Federal Reserve's adjustment in the economy's estimates suggest that the US economy may face certain pressure, which may affect the strong position of the US dollar. In addition, well-known economist El-Erian said the Fed needs to publicly state that it will cut interest rates due to "bad news", which also reflects the market's concerns about the outlook for the US economy and has a potential negative impact on the US dollar.
Geopolitics triggered market fluctuations
Türkiye's financial market is turbulent, and the mayor of Istanbul was detained on suspicion of corruption and other charges. This incident caused the Turkish lira to plummet, and the US dollar rose 10.38% against the Turkish lira to 40.486. The Turkish central bank sold record foreign exchange on Wednesday after the Turkish lira plummeted. The instability of the political situation has caused severe fluctuations in the Turkish currency market. This unstable factor may spread to the surrounding foreign exchange market, triggering risk aversion among investors, affecting the flow of funds, and have a negative impact on emerging market currencies and related foreign exchange transactions.
Overall, the foreign exchange market faces aihuaforex.complex news on March 20, 2025. Investors need to pay close attention to the dynamic development of these positive and negative news in order to make more reasonable investment decisions.
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 aihuaforex.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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