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market analysis
A collection of positive and negative news that affects the foreign exchange market
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Hello everyone, today XM Foreign Exchange will bring you "【XM Foreign Exchange Market eouu.cnment】: 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 context of the continuous evolution of the global economic and political landscape, the foreign exchange market is always impacted and affected by various news. For foreign exchange investors, accurately grasping market trends and interpreting key news is the key to making wise decisions in a eouu.cnplex and changeable market. On August 7, the foreign exchange market once again ushered in many important news, which had a significant impact on the trends of different currency pairs.
1. Global Economic Policy and Foreign Exchange Management Trends
(I) Policy orientation of the People's Bank of China and the State Administration of Foreign Exchange
At the second half of 2025, the People's Bank of China emphasized that it is necessary to eouu.cnprehensively use a variety of monetary policy tools to maintain abundant liquidity, guide financial institutions to maintain reasonable credit growth, and make the scale of social financing and the growth of money supply match the expected goals of economic growth and total price level. This statement aims to stabilize domestic economic growth and provide potential support for the RMB exchange rate. At the same time, the State Administration of Foreign Exchange held a working meeting for the second half of 2025, and clearly proposed to deepen reform and opening up in the foreign exchange field, support the stable development of foreign trade, and implement a package of trade foreign exchange management reform policies such as optimizing the settlement of foreign exchange funds of new foreign trade formats and facilitating the centralized management of overseas funds of contracted engineering enterprises. Actively promote the facilitation of cross-border investment and financing, such as promoting the cancellation of domestic reinvestment registration for foreign-invested enterprises and facilitating cross-border financing for technology-based enterprises, will promote cross-border capital flows and enhance the activity of the RMB in the international market. These policy measures are generally conducive to the stability of the RMB exchange rate within a reasonable range and create favorable conditions for RMB foreign exchange transactions.
(II) US policy and tariff trends
According to CCTV's newAccording to a White House announcement, the so-called "reciprocal tariffs" in the United States came into effect on August 7, which provides countries with another time window for attempts to negotiate a reduction in tariffs. Tariff policies have always been an important factor affecting the global economy and foreign exchange market. If countries can take this opportunity to negotiate to reduce tariffs, it will ease trade tensions and increase global economic growth expectations, which will benefit the trend of risky currencies (such as the Australian dollar, New Zealand dollar and other eouu.cnmodity currencies), because these currencies are closely related to global trade and economic growth. On the contrary, if tariff negotiations break down and trade protectionism intensify, it may lead to a warming market risk aversion sentiment, pushing the strengthening of safe-haven currencies such as the US dollar and the Japanese yen.
2. Analysis of the market and trends of the foreign exchange market on the same day
(I) The rise and fall of major currency pairs
Judging from the foreign exchange market trading data on that day, there is a situation where multiple currency pairs rise and fall. The Canadian dollar rose 0.2495% against the Australian dollar, the offshore yuan rose 0.0838% against the euro, and the Dominican peso rose 0.4386% against the Canadian dollar, etc., indicating that some currency pairs have price fluctuations due to factors such as economic data, policy expectations or capital flows. For example, the rise in the Canadian dollar against the Australian dollar may be affected by factors such as Canadian economic data being better than Australia or the market's more optimistic expectations for the Bank of Canada's monetary policy. The euro fell 0.0251% against the Algerian dinar and the euro fell 0.0176% against the Hungarian Forint, which reflects that the euro faces certain pressure in some cross-currency pairs, which may be related to factors such as economic data differentiation and geopolitical risks within the euro zone.
(II) Analysis of the causes of market fluctuations
The fluctuations in the foreign exchange market are often the result of the eouu.cnbined effect of multiple factors. The release of economic data is an important fuse. If a certain country's GDP, inflation data, employment data, etc. exceed or be lower than market expectations, it will directly affect the market's judgment of the country's economic prospects, and in turn affect its currency exchange rate. In terms of policy changes, the central bank's interest rate adjustment, monetary policy shift, and the government's fiscal policy will have a profound impact on the foreign exchange market. In addition, the geopolitical situation is also a factor that cannot be ignored. Regional conflicts, tensions in international relations or easing will trigger the ups and downs of market risk aversion, causing funds to flow between different currencies and driving exchange rate fluctuations. Taking recent examples, tensions in the Middle East continue. If the conflict escalates further, it may trigger a sharp rise in risk aversion sentiment in the market, prompting funds to flow into safe-haven currencies such as the US dollar and the Japanese yen, driving their exchange rate to rise, while risky currencies are facing downward pressure.
3. Future market outlook and risk warning
Looking forward, the foreign exchange market will still face many uncertainties. On the one hand, the prospects for global economic growth are still unclear, the growth momentum of emerging economies weakens, and trade protectionism rises, and these factors will continue to affect the risk appetite of the foreign exchange market. On the other hand, the monetary policy differentiation of central banks in various countries has intensified, and there are differences in the monetary policy trends of major central banks such as the Federal Reserve, the European Central Bank, and the Bank of Japan, which may intensify currency exchange rate fluctuations. For example, if the Fed continuesThe hawkish stance continues to be maintained, while the European Central Bank adopts loose policies due to weak economic growth, and the dollar may continue to strengthen against the euro.
In the transaction process, investors need to pay close attention to the release of economic data, speeches of central bank officials and changes in the geopolitical situation. At the same time, use risk management tools reasonably, set stop loss and take profit to avoid major losses caused by large market fluctuations. In the eouu.cnplex and changeable foreign exchange market, maintaining sensitivity to various types of news and timely adjusting trading strategies is the key to achieving stable investment.
In short, on August 7, the foreign exchange market was affected by multiple factors such as global economic policy adjustments, tariff trends and market itself fluctuations. Investors need to eouu.cnprehensively analyze all kinds of positive and negative news, grasp the pulse of the market, and cope with the changes in the foreign exchange market.
The above content is all about "【XM Foreign Exchange Market Review】: Collection of positive and negative news that affects the foreign exchange market". It was carefully eouu.cnpiled and edited by the XM Foreign Exchange editor. I hope it will be helpful to your trading! Thanks for the support!
Due to the author's limited ability and time constraints, some content in the article still needs to be discussed and studied in depth. Therefore, in the future, the author will conduct extended research and discussion on the following issues:
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