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Hello everyone, today Avatrade Aihua Foreign Exchange will bring you "[Aihua Foreign Exchange 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 are aihuaforex.complicated every day, and these news is like pairs of invisible hands, swaying the currency exchange rate trend. On April 24, 2025, many factors worked together in the foreign exchange market. The following is a review of the positive and negative news.
Economic data level news
China: Although the latest key economic data has not been released, from the perspective of past trends, China's economy faces certain challenges. China, which has driven oil consumption growth for many years, has limited prospects for oil demand growth due to changes in the economic situation and the trend of transition to electric vehicles. This situation may indirectly affect the RMB exchange rate, because oil occupies an important position in international trade, and changes in demand are related to trade revenue and balance, which in turn affects the supply and demand relationship of the foreign exchange market to the RMB. However, the International Energy Agency (IEA) raised its forecast for global oil demand growth in 2025 due to China's recent stimulus measures, suggesting that China's economic stimulus measures have potential positive effects on the overall economy and trade, and have some support for the RMB exchange rate.
U.S.: There are currently no outstanding economic data on the day that affects the trend of the US dollar. But in recent times, the performance of US economic data is good and bad, the employment market is relatively stable, and the consumer confidence index has risen, which has a supporting role for the US dollar and is conducive to the strengthening of the US dollar in the foreign exchange market. However, the US economy also faces potential risks, such as uncertainty in Trump's tariff policy, which may affect US trade balances and thus impact the US dollar exchange rate.
Policy level news
China: The State Administration of Foreign Exchange stated that more active and proactive foreign exchange management policies should be implemented in 2025. Increase efforts to promote foreign exchange facilitation reform, include more technology-based enterprises in the pilot program of cross-border financing facilitation, and guide high-quality overseasCapital investment in domestic high-tech industries; promote corporate foreign debt management reform, and continuously improve multinational corporations' fund pool policies. If these policies are gradually implemented, they will attract foreign capital inflows, increase the demand for the RMB in the foreign exchange market, and promote the rise of the RMB exchange rate. At the same time, the policy emphasizes maintaining basic stability of the foreign exchange market, improving the monitoring and early warning system for cross-border capital flows, and strengthening countercyclical adjustment and expectations management of the foreign exchange market, which will help stabilize RMB exchange rate fluctuations.
U.S.: The direction of the Federal Reserve's monetary policy has a significant impact on the foreign exchange market. The market's expectations for the Fed's interest rate cut are repeated. If the Fed releases a clear signal of interest rate cuts in the future, the advantage of the US dollar's interest rate weakens, which may lead to a decline in the attractiveness of the US dollar in the foreign exchange market, triggering a depreciation of the US dollar and a relatively appreciation of other currencies. But the Fed currently maintains a "hawkish suspension" stance, supporting the US dollar to a certain extent.
International Event Level News
Trade Situation: Trump said on Tuesday that after reaching an agreement with Asian powers in the future, U.S. tariffs "will be significantly reduced", although not to zero. The easing of trade concerns will theoretically help improve global economic expectations and promote international trade exchanges. For the United States, lowering tariffs may improve trade balances and provide some support for the US dollar; for other trading partners, the trade environment improves and economic growth expectations increase, and their currencies may also receive support in the foreign exchange market. For example, if the Sino-US trade relations further ease, Chinese export aihuaforex.companies will benefit and the trade surplus will expand, which will increase the RMB supply in the foreign exchange market and drive the RMB exchange rate to rise.
Geopolitics: Tensions in the Middle East have eased in recent days, weakening the yen's risk aversion attribute. In the foreign exchange market, as a traditional safe-haven currency, when local political risks are reduced, the demand for safe-haven by funds for the Japanese yen declines, resulting in the depreciation of the yen, and other currencies such as the US dollar and the euro appreciate relative to the Japanese yen. For example, the dollar-JPY exchange rate may show an upward trend due to expectations of depreciation of the yen.
Other news
Central RMB exchange rate: On April 23, the People's Bank of China authorized the China Foreign Exchange Trading Center to announce that the RMB exchange rate midpoint in the interbank foreign exchange market is 1 US dollar to RMB 7.2116, a 42 basis points lowered. The lowering of the RMB exchange rate mid-price reflects to a certain extent the market's short-term expectations of the RMB, which may affect investors' confidence in the RMB. In foreign exchange market trading, it prompts some investors to adjust their RMB related positions and affect the RMB exchange rate trend.
Global stock market performance: The Dow Jones, Nasdaq, etc. rose overnight, the German DAX Index, France CAC40 Index, and the UK London Financial Times 100 Index also closed higher, but the Japan Tokyo 225 Index fell 0.17%. Global stock market performance affects investors' risk appetite. When the stock market generally rises, investors' risk appetite increases and tends to invest in high-yield assets, which may increase the demand for emerging market currencies and other risky assets; when the stock market falls, if the Japanese stock market falls, investors may seek risk aversion, affecting the trend of currencies such as the yen.
aihuaforex.comprehensiveFrom the perspective of this, on April 24, 2025, the foreign exchange market was affected by the interweaving of various news. The exchange rate trends of each currency are full of uncertainty. Investors need to pay close attention to relevant news trends and make investment decisions cautiously.
The above content is all about "【Aihua Foreign Exchange Official Website】: Collection of Positive and Negative News that Influence the Foreign Exchange Market". It was carefully aihuaforex.compiled and edited by Aihua Avatrade Foreign Exchange Editor. I hope it will be helpful to your trading! Thanks for the support!
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