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Hello everyone, today Avatrade Aihua Foreign Exchange will bring you "【Avatradescn Official Website】: 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, continuously affecting the trend of the currency and the decisions of investors. The following is a summary of the positive and negative news that affects the foreign exchange market on March 14, 2025.
Macroeconomic data triggers market fluctuations
The economic data recently released by the United States has become a key factor affecting the foreign exchange market. On Thursday, Eastern Time, the number of initial unemployment claims in the United States to March 8 was 220,000, lower than the expected 225,000, and the previous value was revised from 221,000 to 222,000. This data shows that the US labor market still has some resilience and potential support for the US dollar, which may theoretically promote the US dollar to strengthen in the foreign exchange market, because strong labor market data often suggests stable economic growth, attracting more capital to flow into the United States and increasing demand for the US dollar. However, the US PPI data in February performed poorly. The US PPI rose 3.2% year-on-year in February, lower than expected increase of 3.3%, and the previous value revised from 3.5% to 3.7%; the US PPI remained unchanged month-on-month, with expectations rising by 0.3%, and the previous value revised from 0.4% to 0.6%. A lower producer price index means that the cost pressure faced by aihuaforex.companies has been alleviated, but it may also reflect the lack of inflation momentum in the economy. In the long run, it may weaken the attractiveness of the US dollar and put some downward pressure on the US dollar exchange rate.
Trade policy conflicts escalate
The "tariff fight" between the United States and Europe has further escalated, which has had a profound impact on the global foreign exchange market. On March 12, local time, the European aihuaforex.commission announced that it will impose counter-tariff tariffs on US products worth 26 billion euros (about 205.1 billion yuan) starting from April 1 in response to the United States' total imports.Steel and aluminum will be subject to a 25% tariff and will be fully implemented on April 13. US President Trump said on the 13th local time that if the EU does not cancel the 50% tariff on US whiskey products, the US will soon impose a 200% tariff on all wines, champagne and other alcoholic products from France and other EU countries. The intensification of trade frictions has greatly increased market uncertainty and increased risk aversion among investors. In this case, traditional safe-haven currencies such as the Japanese yen and Swiss francs may be favored, and capital inflows will drive their appreciation. For the euro and the US dollar, trade conflicts not only affect the economic growth prospects of both sides, but also impact market confidence in their currencies, which may intensify exchange rate fluctuations between the euro and the US dollar. The specific direction depends on the further game of subsequent policies of both sides and the assessment of the market's impact on the economy.
The linkage between geopolitics and gold prices
Geopolitical factors have always been an important force that cannot be ignored in the foreign exchange market. Recently, U.S. President Trump threatened that the United States may impose new sanctions on Russia if Russia fails to reach a ceasefire with Ukraine, and said it is "strongly considering" sanctions on Russian banks and imposing tariffs on Russian products. This statement has aroused market concerns about crude oil supply and the stability of the geopolitical situation. Meanwhile, gold prices soared to record highs. On Thursday, London spot gold stood above the $2988 mark, and aihuaforex.comEX gold futures rose 1.85% to $3,001.3 per ounce, both hitting record highs. As a safe-haven asset, the sharp rise in prices reflects the strong risk aversion sentiment in the market. In this case, currencies closely linked to the geopolitical situation, such as the ruble, may face depreciation pressures as investors fear that the escalation of geopolitical conflict will have a negative impact on the Russian economy. Other currencies, such as the Australian dollar, may also be impacted by market turmoil caused by geopolitics due to their high correlation with the global economic situation and aihuaforex.commodity prices. However, if the rise in gold prices drives the rise in aihuaforex.commodity prices such as related non-ferrous metals, it may have a supporting role to a certain extent on the Australian dollar and other currencies, and the trends of currencies in the foreign exchange market have become more aihuaforex.complicated.
Central Bank Policy and Foreign Exchange Market Expectations
Although no major central banks directly announced major monetary policy adjustments on March 14, the expectations of central bank policies have far-reaching impact on the market. Take the Swiss National Bank for example, it previously cut interest rates by 50 basis points to 0.50%, far exceeding market expectations, and this move has had a direct impact on the Swiss franc exchange rate. The market closely monitors the subsequent interest rate trends, monetary policy adjustment directions and assessments of economic prospects of central banks in various countries. If the central bank sends out signals of loose monetary policy, it may lead to depreciation of its own currency; on the contrary, tightening monetary policy may prompt currency appreciation. In addition, the central bank's foreign exchange market intervention actions are also an important factor affecting the exchange rate. Although there are no such major actions reported recently, once the central bank conducts foreign exchange market intervention and directly buying and selling currencies will have an immediate effect on the exchange rate of the relevant currency.
Overallhttps://aihuaforex.comForeign exchange market on March 14, 2025 was affected by a variety of aihuaforex.complex factors, and positive and negative news coexisted. Investors need to pay close attention to the dynamics of all parties and make investment decisions cautiously.
The above content is all about "【Ava Aihua Official Website】: Collection of Positive and Negative News that Influences the Foreign Exchange Market". It was carefully aihuaforex.compiled and edited by Aihua Avatrade Forex editor. I hope it will be helpful to your trading! Thanks for the support!
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