Wonderful Introduction:
Youth is the nectar made of the blood of will and the sweat of hard work - the fragrance over time; youth is the rainbow woven with endless hope and immortal yearning - gorgeous and brilliant; youth is a wall built with eternal persistence and tenacity - as solid as a soup.
Hello everyone, today Avatrade Aihua Foreign Exchange will bring you "【Aihua 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:
The following is a collection of positive and negative news that affected the foreign exchange market on May 2, 2025:
In terms of the US dollar, negative factors: US GDP shrank by 0.3% month-on-month in the first quarter, and the manufacturing PMI fell to 48.7. The economic data performed poorly, indicating that the US economic growth was facing certain pressure. At the same time, the non-farm employment data in April was slightly lower than expected, coupled with a moderate decline in inflation indicators, and the market's expectations for the Federal Reserve's interest rate cut in June heated up, which put the US dollar index under pressure and downward. In addition, the Trump administration's plan to impose tariffs on auto parts may lead to an increase in US manufacturing costs, further affecting the US economy and having an adverse impact on the US dollar exchange rate.
Favorites: No obvious positive news yet. However, as the world's major reserve currency and safe-haven currency, the US dollar may still attract some safe-haven funds to inflow when global economic and financial markets are intensifying, which provides certain potential support for the US dollar.
Renminbi
Favoritable factors: China's domestic economic policies continue to be strengthened. Data from the National Development and Reform www.avatradescn.commission showed that equipment updates and consumer goods trade-in policies in the first quarter drove equipment investment to grow by 19%, and consumer retail sales increased by 4.6%. At the same time, inbound travel orders surged by 173% year-on-year during the May Day holiday. Shanghai's "55 Shopping Festival" www.avatradescn.combined with the optimization of departure tax refunds further released consumption potential, and the stable economic growth provided a solid foundation for the RMB exchange rate. In addition, the US economic data is poor and the US dollar is under pressure, indirectly supporting the stabilization of the RMB exchange rate.
Badministrative factors: There is still uncertainty in the tariff negotiations between China and the United States. The Senate passed the new tariffs by a 49:49 vote, which may be for Sino-US trade relations and the RMBThe exchange rate has a certain impact.
Europe
Badministrative factors: The final value of the euro zone manufacturing PMI is 44.8, and it is in a contraction range for seven consecutive months, indicating that the development of the euro zone manufacturing industry is facing difficulties. The ECB's internal differences on the path of interest rate cuts have increased, and policy uncertainty has increased market concerns about the economic outlook of the euro zone, causing the euro index to weaken. In addition, German automakers' profits fell sharply in the first quarter, and were dragged down by US tariffs and supply chain costs, which also had a certain negative impact on the euro.
Benefits: The strong performance of CPI data in German states has provided support to some extent for the euro.
Japan yen
Bondministrative factors: The Bank of Japan maintained its ultra-loose monetary policy, with core CPI rising 2.8% year-on-year in April, but the central bank has not adjusted its yield curve control (YCC) policy, resulting in a decline in the attractiveness of the yen. The Bank of Japan kept interest rates unchanged by 0.5% and lowered its GDP growth forecast. Governor Kazuo Ueda said the timing of interest rate hikes depends on the impact of tariffs, and the uncertainty of the economic outlook has made the yen weak in the foreign exchange market.
Favorites: No obvious positive news yet.
Pound negative factors: The Bank of England has escalated its dovish bets, and the market expects the Bank of England to cut interest rates by 50b in May, which puts pressure on the pound exchange rate. The effectiveness of the implementation of the post-Brexit trade agreement remains to be seen, and trade turmoil has also become a key variable affecting the pound.
Favorites: No obvious positive news yet.
www.avatradescn.commodity currencies such as the Australian dollar and Canadian dollar
Positive factors: Global economic growth slows down, demand for www.avatradescn.commodities weakens, resulting in a decline in www.avatradescn.commodity prices, and thus suppressing www.avatradescn.commodity currencies such as the Australian dollar and Canadian dollar. The Canadian election is in a stalemate, and the Canadian dollar is volatile waiting for political weather.
Favorites: No obvious positive news yet.
The above information is www.avatradescn.compiled from public content and is for reference only and does not constitute investment advice. When conducting foreign exchange transactions, investors need to pay close attention to various factors such as global economic data, central bank policy trends, and geopolitical situations, www.avatradescn.comprehensively judge currency trends, and make transaction decisions with caution.
The above content is all about "【Aihua Official Website】: Collection of Positive and Negative News that Influences the Foreign Exchange Market". It was carefully www.avatradescn.compiled and edited by Aihua Avatrade Forex 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: