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Hello everyone, today XM Foreign Exchange will bring you "【XM Foreign Exchange Platform】: 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:
Features: The European Central Bank continued to cut interest rates, causing the euro to weaken, and supported the US dollar to a certain extent. The US dollar index stabilized and fluctuated above the 99 mark, and finally closed up 0.18% on April 17 to 99.44. In addition, the yield on the US Treasury rebounded, with the benchmark 10-year US Treasury closing at 4.330%, and the two-year US Treasury yield that is more sensitive to monetary policy closed at 3.809%, which also provides some support for the US dollar.
Bad negative: US President Trump expressed strong dissatisfaction with the Fed's delay in cutting interest rates, and even said that he had the ability to step down Fed Chairman Powell, which has triggered market concerns about the stability of US monetary policy and may have a certain negative impact on the US dollar. Moreover, the market's concerns about US tariff policies are still continuing. US tariff policies have exacerbated the risk of recession. The US dollar index fell below the 100 mark since April 11, hitting a new low since July 2023. The market has doubts about the stability of the US dollar as a reserve currency.
Bad negative: The ECB announced its seventh interest rate cut in a year on April 17, lowering the central bank's benchmark interest rate by 25 basis points to 2.25% in order to boost the eurozone economy, which is further under pressure due to US trade tariffs. This caused the euro to fall 0.33% against the US dollar in the late trading of New York on April 17 to 1.1362. In addition, the eurozone economic growth remains fragile and faces many uncertainties such as geopolitical tensions and global trade failureDeterminism and other factors all put pressure on the euro.
Favorite: Options traders bet on the RMB for the first time in two weeks will rise slightly in the next month. The 1-month USD/offshore RMB risk reversal index fell to -0.05% on April 17, entering the negative area for the first time since April 2, indicating that put options demand dominates, that is, the market's expectations for the appreciation of the RMB have increased. Moreover, the recent decline in the RMB mid-price has been significantly smaller than the fluctuations in the offshore exchange rate, which has triggered speculation by the regulatory authorities that "stabilize the exchange rate" through countercyclical factors. The signal of policy intervention has been enhanced, which will help stabilize the RMB exchange rate. In addition, as the overnight and 7-day CNHHIBOR interest rates rebound, offshore liquidity tightens, and the cost of shorting the RMB has increased, which also has provided certain support for the RMB.
Badministrative aspects: There is still uncertainty about changes in the global trade environment, which has a certain impact on the foreign exchange market, including the RMB exchange rate. However, at present, the RMB exchange rate fluctuates widely in the range of 7.3-7.4, and the short-term trend will depend on the progress of US tariff negotiations and the policy response of non-US economies.
Canadian dollar: The Bank of Canada suspended interest rate cuts, triggering a Canadian dollar fluctuation, and the US dollar/Canadian dollar bottomed out and rebounded.
Australia: The Australian Reserve Bank's expectation of interest rate cuts has heated up, with the Australian dollar/USD remaining at a low of around 0.6350.
New Zealand Dollar: As of 5:11 on April 18, 2025, the New Zealand Dollar exchange rate against the US dollar exceeded 1 New Zealand Dollar to 0.5961 US dollars, an increase of 0.5092%. The current exchange rate price is a 5-month high, an increase of 1-month high.
Overall, the foreign exchange market is affected by a combination of various factors, and investors need to pay close attention to changes in these news when trading in order to make reasonable decisions.
The above content is all about "【XM Foreign Exchange Platform】: Collection of positive and negative news that affects the foreign exchange market". It was carefully compiled and edited by the XM Foreign Exchange editor. I hope it will be helpful to your trading! Thanks for the support!
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