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A collection of positive and negative news that affects the foreign exchange market
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Since ancient times, there have been joys and sorrows, and since ancient times, there have been sorrowful moon and songs. But we never understood it, and we thought everything was just a distant memory. Because there is no real experience, there is no deep feeling in the heart.
Hello everyone, today XM Foreign Exchange will bring you "【XM Group】: 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 foreign exchange market, various news always affects the trend of the currency, and investors need to pay close attention. On July 16, a series of positive and negative news intertwined, swaying market sentiment and expectations.
1. Good news
(I) China's foreign exchange reserves have been rebounding continuously, supporting the RMB exchange rate
On July 7, the State Administration of Foreign Exchange released statistics showing that as of the end of June 2025, the scale of my country's foreign exchange reserves was US$3317.4 billion, an increase of US$32.2 billion from the end of May, an increase of 0.98%, and a month-on-month rebound for six consecutive months. This is also the first time that my country's foreign exchange reserves have reached the 3.3 trillion US dollar mark since September 2024, and have remained above 3.2 trillion US dollars for 19 consecutive months. The State Administration of Foreign Exchange stated that due to factors such as macro policies and economic growth prospects of major economies, the US dollar index fell, and global financial asset prices rose overall, and the scale of foreign exchange reserves rose that month under the www.xmhouses.combined effect. my country's economy continues to grow steadily, which is conducive to the basic stability of the scale of foreign exchange reserves.
Adequate foreign exchange reserves provide important support for the stability of the RMB exchange rate and the stability of the financial market. Against the background of the current www.xmhouses.complex and severe external environment and high volatility of the international financial market, moderately abundant foreign exchange reserves have enhanced my country's ability to prevent and resolve various shocks, making the RMB more confident in the foreign exchange market, forming a positive support for the RMB exchange rate, and to a certain extent boosted the market's confidence in RMB assets.
(II) The State Administration of Foreign Exchange plans to introduce more facilitation policies
At a press conference held by the State Council Information Office on January 14, Li Bin, deputy director and spokesperson of the State Administration of Foreign Exchange, saidIn 2025, a foreign exchange management system and mechanism will be built that is "more convenient, more open and safer". Among them, in terms of facilitation policies, we will continue to promote the foreign exchange payment facilitation policy of high-quality enterprises, and promote it to regions and small and medium-sized banks with small and small and medium-sized banks, so that more high-quality small and medium-sized enterprises can enjoy the convenience of reducing documents and simplifying processes; in www.xmhouses.combination with the characteristics of new trade formats, we will support the return of export payments, simplify relevant foreign exchange payment procedures, and improve the level of facilitation of foreign exchange funds settlement; respond to the demands of contracting engineering www.xmhouses.companies, support the unified management and independent allocation of cross-border and cross-regional engineering project funds, and improve the efficiency of fund management.
If these policies are gradually implemented, they will help promote the activity of trade and investment, attract more foreign capital inflows, and increase the market demand for the RMB, thereby having a positive impact on the RMB exchange rate and related foreign exchange transactions.
(III) The rise in exchange rates of some currencies brings trading opportunities
Judging from the foreign exchange market data on that day, there are situations where the exchange rates of some currencies rise. For example, the Brunei dollar rose by 0.0321% against the Swiss franc, the Bulgarian Lev rose by 0.0767% against the euro, and the Bangladeshi Taka rose by 1.5691% against the Japanese yen. For investors engaged in related currency pair trading, this rising exchange rate market provides potential profit opportunities and has also activated the trading atmosphere of the foreign exchange market to a certain extent.
2. Negative news
(I) Uncertainty in global economic growth affects risky currency demand
At present, global economic growth faces many uncertain factors. China's economic recovery is weak, and domestic apparent consumption of refined oil has declined year-on-year, reflecting the weak trend of domestic demand. The European and American economies are also showing signs of slowing down. Although the US refinery operating rate remains high, the overall economic environment has imposed a constraint on crude oil demand. The International Energy Agency's monthly report pointed out that oil demand has slowed significantly in recent times and lowered its average oil demand growth forecast for 2025 and 2026.
In this uncertain situation of global economic growth prospects, market risk appetite has declined, and investors' demand for risky currencies such as the Australian dollar and New Zealand dollar has decreased, resulting in downward pressure on the foreign exchange market, affecting the trend of related currency pairs.
(II) Geopolitical tensions impact market confidence
Tenuous geopolitical situations have always been an important factor affecting the foreign exchange market. U.S. President Trump threatened to impose new sanctions on Russian oil buyers, a move that could have a significant impact on the global energy supply landscape, raising market concerns about the supply side. At the same time, tariff negotiations between the United States and its major trading partners are still continuing, and the uncertainty of trade frictions casts a shadow on the outlook for global economic growth and further impacts market confidence.
In the foreign exchange market, the rise in geopolitical risks often triggers risk aversion among investors, and funds will flow to safe-haven currencies such as the US dollar, Japanese yen, Swiss franc, etc., while other currencies may be sold, resulting in intensified exchange rate fluctuations and increasing the risks and uncertainties of foreign exchange transactions.
(III) The "strong dollar" trend may continue, suppressing non-US currencies
Zhao Zhixuan, chief foreign exchange and interest rate strategist at Bloomberg Industry Research Asia, believes that "strong dollar" is still the main tone of 2025. On the one hand, the Fed has limited room for interest rate cuts. The market expects to cut interest rates by up to one or two times in 2025. Terminal interest rates remain at a high level, and the US dollar still has a spread advantage; on the other hand, the uncertainty brought by the "Trump 2.0" policy, especially the tariff policy, will have an impact on non-US economies, and thus support the US dollar to remain strong.
Under the "strong US dollar" trend, non-US currencies generally face depreciation pressure, and the exchange rate of the US dollar against other currencies in the foreign exchange market may further rise. The situation is relatively unfavorable for investors who hold non-US currency assets or conduct related currencies short-term trading.
Total view, on July 16, the foreign exchange market was affected by the www.xmhouses.combined effect of a variety of positive and negative news, and the market trend was relatively www.xmhouses.complicated. When Investors conduct foreign exchange trading, they need to consider these factors www.xmhouses.comprehensively, pay close attention to market trends, and reasonably adjust their investment strategies to cope with uncertainty in the foreign exchange market.
The above content is all about "【XM Group】: Collection of positive and negative news that affects the foreign exchange market". It was carefully www.xmhouses.compiled and edited by the XM Forex editor. I hope it will be helpful to your trading! Thanks for the support!
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