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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 affects the foreign exchange market on April 22, 2025:
Bad news
The US dollar is suppressed by multiple factors:
Trump pressure on the Federal Reserve triggers a crisis of trust: Trump repeatedly threatened to fire Federal Reserve Chairman Powell and publicly put pressure on interest rate cuts, resulting in the collapse of market trust in the independence of the Federal Reserve. The White House even studied the feasibility of firing Powell, further exacerbating the dollar sell-off. On April 21, the US dollar index fell below the 98 mark, hitting a new low since March 2022, and has fallen by more than 10% since the high in January 2025. Goldman Sachs pointed out that the US dollar is still overvalued by 20%.
Repeated trade policies and credit crisis: Trump imposed "universal tariffs" on the world, and the policy changes every day have led to turmoil in the global supply chain. Deutsche Bank warned that this uncertainty accelerated the "de-dollarization" process, with the dollar's share of global foreign exchange reserves falling from 66% in 2015 to 58%.
Economic recession and debt risks: The proportion of US federal debt to GDP reaches 123%, and inflation is high. JPMorgan Chase expects the probability of US economic recession to rise to 60%. Foreign capital continues to sell US bonds, and Japanese private investors sell US$17.5 billion in long-term US bonds in a single week, further hitting US dollar credit. Investors accelerated their withdrawal of US dollar assets and turned to safe-haven assets such as gold, Swiss franc, and yen.
The decline in the U.S. stock market affected market sentiment: On April 21, the three major U.S. stock indexes all fell by more than 2%, the Dow Jones Industrial Average closed down 2.48%, the S&P 500 fell 2.36%, and the Nasdaq fell 2.55%. The decline in the stock market reflects the market's concerns about the outlook for the US economy, which in turn affects investors' confidence in the US dollar, indirectly giving the USThe dollar exchange rate brings pressure.
Favorite News
Yen Strengthens: Due to the weakening of the US dollar and the rising market risk aversion sentiment, the yen is favored as a traditional safe-haven currency. On April 22, the US dollar against the Japanese yen fell below 140.8320 yen for 1 US dollar, a drop of -0.9272%, equivalent to 100 yen for 5.1680 RMB. The current exchange rate price is a 7-month low and a 2-month low.
The appreciation of Swiss franc: Also due to market risk aversion sentiment, Swiss franc appreciated by more than 10% against the US dollar this year. Against the background of the weakening of the US dollar, Swiss franc's strong performance is relatively outstanding, attracting the attention of investors.
aihuaforex.com Potential positive for the euro: With the recession of the dollar's credit, the euro has risen sharply against the dollar. Although the eurozone economy also faces some challenges, such as slowing growth, the weakening of the US dollar provides some room for appreciation for the euro. Moreover, as global funds seek to diversify their allocations, the euro, as an important international currency, may attract more capital inflows.
In addition, China issued the "Opinions on Implementing the Strategy for Improving the Free Trade Pilot Zones", and the four departments jointly issued the "Action Plan for Further Improving the Facilitation of Cross-border Financial Services by Shanghai International Financial Center", optimized the functions of the RMB Cross-border Payment System (CIPS) and expanded global network coverage. These measures will help enhance the RMB's status and convenience in the international financial market. In the long run, it will have positive significance for the stability and internationalization of the RMB exchange rate. However, the RMB exchange rate is still affected by a aihuaforex.combination of various factors in the short term, and further observation of market trends is needed.
Overall, the current foreign exchange market is affected by a variety of factors such as U.S. policy uncertainty, economic outlook concerns, and global trade tensions, with the U.S. dollar weakening, while some safe-haven currencies and other major currencies are relatively strengthening. Investors need to pay close attention to changes in these factors when conducting foreign exchange transactions in order to make reasonable decisions.
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