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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 positive and negative news that affects the foreign exchange market on April 23, 2025:
Favorite news
Risks in global stock markets boost risk appetite: US stocks closed sharply on Tuesday, with the Dow Jones Industrial Average rising 2.66%aihuaforex.com, the Nasdaq rose 2.71%, and the S&P 500 rose 2.51%. European stock markets also closed higher across the board, with the German DAX30 index rising 0.41%, the UK FTSE 100 index rising 0.64%, and the French CAC40 index rising 0.56%. Rising global stock markets usually enhance the market's risk appetite, prompting investors to reduce their demand for safe-haven currencies and increase investment in risky currencies, thereby promoting the appreciation of related currencies, such as the euro, the pound, etc., which may benefit from it.
Easing trade tensions are favorable to non-US currencies: The market is optimistic about US tariff trade negotiations, and this news has pushed the US dollar index to rebound by nearly 100 points at a low point, but in the long run, the easing of trade tensions will help stabilize global economic growth expectations and reduce uncertainty, which is beneficial to non-US currencies as a whole. Because the reduction of trade uncertainty will promote international trade and investment, increase the economic vitality of non-U.S. countries, and thus enhance the fundamental support of their currencies.
China's financial market openness attracts foreign capital inflows: Deputy Director of the State Administration of Foreign Exchange said that in February this year, the country issued the "2025 Action Plan for Stabilizing Foreign Investment", providing a good business environment for foreign capital to aihuaforex.come to China to develop its businesses. At the same time, ChinaSteadily expand the opening of the financial market and expand cross-border investment and financing channels. The diversified asset allocation function of RMB will be highlighted, which will attract more foreign capital to flow into the Chinese market, increase the demand for RMB, and form a certain supporting role for the RMB exchange rate.
Bold news
U.S. economic growth expectations are lowered: The International Monetary Fund predicts that in 2025, the United States is expected to slow down to 1.8%, a 0.9 percentage point lower than the forecast at the beginning of the year. A lowering of U.S. economic growth expectations may lead to a decline in market confidence in the US dollar, which is not conducive to the strengthening of the US dollar exchange rate in the long run. If investors expect weak U.S. economic growth, they may reduce their investment in dollar assets and instead seek other assets with more growth potential, thus putting downward pressure on the dollar exchange rate.
The Bank of Japan's ultra-loose monetary policy continues: the pressure on the depreciation of the yen mainly aihuaforex.comes from the dual constraints of high interest rate spreads between the United States and Japan and the moderate domestic inflation. The Bank of Japan's continued ultra-loose monetary policy makes the yen relatively weak in the international currency market. Although the Japanese stock market has risen to a certain extent, under the influence of the overall economic situation and monetary policy, the yen still faces certain depreciation pressure in the foreign exchange market.
The risk of recession in the UK is rising: the decline in the UK inflation data and the risk of recession have weakened the safe-haven attributes of the pound. From the perspective of economic fundamentals, the risk of an economic recession will lead to a decrease in investor confidence in UK assets and reduce demand for the pound. Moreover, under the expectation of a recession, the Bank of England may adopt loose monetary policies such as interest rate cuts to stimulate the economy, which will further reduce the attractiveness of the pound and have an adverse impact on the pound exchange rate.
The above content is aihuaforex.compiled based on public information and does not constitute investment advice. The foreign exchange market is affected by a variety of factors. When investor conducting foreign exchange transactions, they need to consider various factors and make decisions with caution.
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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