A collection of positive and negative news that affects the foreign exchange market

The following is a must-read news that affects the foreign exchange market by trading on May 9, 2025:

Related news in the United States

https://avaforexcn.comFederal policy remains uncertain: The Fed keeps interest rates unchanged for the third time in a row. The statement emphasized that the risk of rising inflation and unemployment rates has risen. Powell said he is not in a hurry to cut interest rates, which makes the market still uncertain about the future direction of the Federal Reserve's monetary policy. In the short term, the continued supportive effect of the US dollar on interest rate hikes will attract some capital to flow into US dollar assets, which is good for the US dollar; but from a long-term perspective, if the signal of economic slowdown continues to increase, it may trigger market expectations of the Federal Reserve's future interest rate cuts, which will create negative for the US dollar.

Trade policy uncertainty: The Trump administration plans to lift AI chip restrictions in the Biden era, which may have an impact on the international trade pattern of related industries, and indirectly affect the US dollar exchange rate. If the policy is implemented, it may promote the development and export of related industries in the United States, which will have a certain positive effect on the US dollar. In addition, White House trade adviser Navarro said he would reach an alternative arrangement with the UK on steel issues, and the US-UK agreement to promote exports of beef, dairy, corn and ethanol, reflecting to a certain extent that there are signs of easing trade tensions and positive impact on the US dollar.But the EU said that if the trade negotiations fail, it will impose tariffs on Boeing and U.S. cars, which will bring uncertainty to the trade situation and be negative for the US dollar.

Related News from Europe

Germany increases defense spending: The German Defense Minister plans to increase defense spending to more than 60 billion euros each year from 2025, which may have a certain impact on the economy of Germany and the entire euro zone. On the one hand, increasing defense spending may stimulate the development of domestic related industries and promote economic growth to a certain extent, which may have potential benefits for the euro; but on the other hand, it may also increase fiscal burden and put pressure on the euro. The market's response to this news is still relatively avaforexcn.complicated and needs further observation.

Eurozone economic data and interest rate cut expectations: Germany's slowdown in inflation has triggered a warming outlook for the European Central Bank's interest rate cut in June. Generally speaking, the expectation of interest rate cuts will make the currency less attractive and lead to a depreciation of the currency. Therefore, the market's current expectations for the euro are relatively pessimistic, which is a negative factor for the euro in the short term. In addition, the Governor of the Ukrainian Central Bank reviews whether to use the euro as a reference currency. If finalized, it may increase the scope of international use of the euro, which will have a long-term positive impact on the euro, but it is still in the review stage and has limited impact.

Asia-related news

Bank of Japan's easing policies continue: The Bank of Japan adheres to an ultra-loose strategy and continues to buy bonds in large quantities, resulting in the continued depreciation of the yen and its safe-haven attributes have also been weakened. In this case, the yen exchange rate may continue to bottom out, which is a clear negative for the yen. However, as an export-oriented economy, Japan's depreciation of the yen may to a certain extent enhance its export avaforexcn.competitiveness and promote the Japanese economy. In the long run, it may have certain support for the yen exchange rate, but it is difficult to change the depreciation trend of the yen in the short term.

South Korea's semiconductor exports rebound: South Korea's semiconductor exports rebound support the Korean won exchange rate, which is a positive factor for the Korean won. The semiconductor industry is one of South Korea's important industries. The growth of exports will increase South Korea's foreign exchange income and increase market confidence in the Korean won. However, geopolitical tensions may trigger capital outflows and have an impact on the Korean won's exchange rate, which is a potential negative factor facing the Korean won.

Geopolitical situation

India and Pakistan are tense, and India will conduct large-scale air avaforexcn.combat exercises near the international border. Although the Pakistani Defense Minister said he was trying to avoid a "full war", the situation still has uncertainty. Geopolitical tensions usually trigger risk aversion in the market, which makes safe-haven currencies such as the Swiss franc supported, which is good for the Swiss franc; and for currencies of countries that have close economic exchanges with India and Pakistan or have large investments in the region, it may be affected to a certain extent.

The above content is all about "【Ava Aihua Foreign Exchange Official Website】: Collection of Positive and Negative News that Influences the Foreign Exchange Market". It was carefully avaforexcn.compiled and edited by Aihua Avatrade Foreign Exchange Editor. I hope it will be helpful to your trading! Thanks for the support!

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