Wonderful introduction:
Let your sorrows be full of worries, and you can't sleep, and you can't sleep. The full moon hangs high, scattered all over the ground. I think that the bright moon will be ruthless, and the wind and frost will fade away for thousands of years, and the passion will fade away easily. If there is love, it should have grown old with the wind. Knowing that the moon is ruthless, why do you repeatedly express your love to the bright moon?
Hello everyone, today XM Foreign Exchange will bring you "【XM 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:
Breaking negative: The expectation of further interest rate cuts in the United States this year has increased, which has caused the US dollar to show a downward trend. Moody's said that rising U.S. Treasurys' yields have reduced debt affordability since 2021. Despite the strong demand for U.S. Treasury assets, debt issues may still put long-term pressure on the dollar.
The potential impact is unknown: On May 18 local time, the New Jersey Passenger Transport Company and its commuter railway engineers reached a labor-management agreement, ending a three-day strike. The New Jersey commuter railway will resume operations on the 19th. This incident has a small direct impact on the US dollar, but from a macroeconomic perspective, it will help stabilize the economic operation of some parts of the United States and indirectly affect the fundamentals of the US dollar. On May 19, Federal Reserve Vice Chairman Jefferson, FOMC Permanent Voting Committee and New York Fed Chairman Williams will deliver speeches, which may have an impact on the trend of the US dollar and need to be closely watched.
Favorite: The Bank of Japan expects to raise interest rates again in 2025, and yen buying continues to heat up. The Bank of Japan's interest rate hike expectations have increased, which has increased the risk of the US dollar/JPY downward, which is a positive factor for the yen, attracting investors to increase their holdings in the yen.
Bold side: There is no obvious negative news at the moment, but we need to pay attention to the situation where the Bank of Japan maintains policy stability before September. If the economic situation changes during the period, it may affect the expectation of interest rate hikes, which will have an adverse impact on the yen.
Positive aspects: EuropeThe yuan has further climbed, but it is necessary to pay attention to the progress of European and American trade negotiations. If the European and American trade negotiations achieve positive results, it will help strengthen market confidence in the euro and push the euro to continue to strengthen.
Bad negative: The recent inflation data in the euro zone has been repeated, and there are policy differences between the hawks and dovish officials in the European Central Bank, making the euro trend full of variables. If inflation data cannot continue to improve, or if policy differences lead to unclear monetary policy direction, it may put pressure on the euro.
Favorite: The UK's economic growth rate exceeded expectations, and the pound remained stable above 1.3300. Strong economic growth has provided strong support for the pound, strengthened the market's confidence in the pound, and helped the pound remain strong in the foreign exchange market.
Holding aspects: The RBA expects interest rate cuts next week, resulting in a sluggish Australian dollar/USD. The interest rate cut is expected to reduce the attractiveness of the Australian dollar, reducing investors' demand for the Australian dollar, and thus pushing the Australian dollar to depreciate.
Honest aspects: In the onshore market, the latest quotation of the US dollar against the RMB exchange rate was 7.2120, an increase of 0.0250% from the previous trading day. The central bank's central bank's central exchange rate mid-price depreciated by 13 basis points from the previous trading day. In the offshore market, the exchange rate of the US dollar against the RMB was 7.2125, and the opening price rose compared with yesterday, with severe fluctuations in the day. Factors such as the difference in economic recovery rhythm between China and the United States and the uncertainty of the Federal Reserve's monetary policy path have put some pressure on the RMB exchange rate.
Favorite: The deepening of bilateral trade between China and Russia has played an important supporting role in the exchange rate between the RMB and the Russian ruble, and has stabilized the RMB's position in cross-border trade to a certain extent.
The above news is just a brief summary. The foreign exchange market is affected by a combination of various factors. When making trading decisions, investors need to comprehensively consider the impact of various news and combine technical analysis and other methods to make reasonable judgments.
The above content is all about "【XM Foreign Exchange Decision Analysis】: Collection of Positive and Negative News that Influence 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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