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Hello everyone, today XM Forex will bring you "[XM Group]: A collection of good and bad news affecting the foreign exchange market". Hope this helps you! The original content is as follows:
US Treasury Secretary's remarks: US Treasury Secretary Bessent said that after the government reopens, official Treasury data will be released, which may increase the market's transparency and confidence in the US fiscal situation and have a certain supporting effect on the US dollar.
Expected policy adjustment by the Bank of Japan: The Bank of Japan unexpectedly adjusted its monetary policy framework on July 28 to increase the flexibility of yield curve control. The market believes that this will benefit the yen to a certain extent. Although short-term fluctuations are still large, it may have a positive impact on the yen exchange rate in the long term.
China’s export data is good: China’s export growth in September was 8.3% year-on-year, higher than market expectations of 6%. This shows the resilience of the Chinese economy and may enhance the stability of the yuan. It also has a certain positive effect on the currencies of countries with close trade relations with China.
Goldman Sachs believes that the U.S. dollar will depreciate: Goldman Sachs pointed out that the fading of U.S. exceptionalism and the increasing risk of U.S. economic recession are driving changes in foreign exchange hedging strategies. Foreign investors should increase the foreign exchange hedging ratio for U.S. stocks, while U.S. investors should reduce the foreign exchange hedging ratio for non-U.S. stocks. This may lead to a reduction in demand for the U.S. dollar. The U.S. dollar will continue to depreciate in the next year, which is relatively beneficial to other currencies.
Fed officials’ dovish stance: Fed official Paulson hinted that he supports two more interest rate cuts this year, each by 25 basis points. This dovish stance may weaken the attractiveness of the US dollar and cause the US dollar exchange rate to fall.
British economic data is not good: the British unemployment rate increased slightly and wage growth slowed in September, which caused the pound to fall against the dollar, reflecting the weakness of the British economy.The pound is negative.
Japanese political uncertainty: The political arena is in confusion after the collapse of Japan’s ruling coalition. The opposition parties have seized power and negotiated policy differences, and economic diplomacy has become passive. The market generally expects that the Bank of Japan may postpone its interest rate hike plan. This has led to the decline in the attractiveness of the Japanese yen and the rise in the exchange rate of the US dollar against the Japanese yen.
The Federal Reserve Bank of New Zealand relaxes restrictions on mortgage loans: The Federal Reserve Bank of New Zealand plans to relax restrictions on mortgage loan-to-value ratios from December 1, 2025, which may increase the supply of currency in the market and exert certain depreciation pressure on the New Zealand dollar. The New Zealand dollar fell back below 0.57 against the US dollar, setting a new low since April 10.
The dark cloud of the trade war reappears: Sino-US trade tensions have once again caused concerns, further weakening market sentiment and putting pressure on the prices of related currency pairs. llfzg.cnmodity currencies such as the Australian dollar may be greatly affected.
The above content is all about "[XM Group]: Collection of good and bad news affecting the foreign exchange market". It is carefully llfzg.cnpiled 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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