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Hello everyone, today Avatrade Aihua Foreign Exchange will bring you "【Avatradescn Forex Platform】: 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 to the latest developments to make informed decisions. The following is a summary of the positive and negative news that affected the foreign exchange market on May 13, 2025.
1. Major good news
(I) China-US economic and trade cooperation sends positive signals
On May 12, China and the United States issued the "Joint Statement on Economic and Trade Talks between China and the United States". This news was like a bombshell, shocking the global financial market. In the statement, the US promised to cancel most of the tariffs imposed on China and modify some of the tariffs, suspending the 24% tariff for 90 days, and retaining only the remaining 10% tariff. This move has greatly alleviated the long-standing tensions in Sino-US trade and opened up new channels for economic and trade cooperation between the two major economies in the world. From the perspective of the foreign exchange market, this positive progress has enhanced the market's confidence in the global economic recovery, and risk appetite has rebounded significantly. The spot exchange rate of RMB against the US dollar rose to 7.2001 intraday, up 460 points from the closing price of 7.2461 on the previous trading day, setting a six-month high since mid-November last year. The offshore RMB exchange rate against the US dollar once rose above the 7.20 mark, rising to a high of 7.1982, up more than 400 points from the closing price of 7.2402 on the previous trading day. This rise reflects a significant increase in market demand for the RMB, and the expectations of capital inflows have increased, which is expected to continue to push the RMB exchange rate to remain strong in the short term. It will also have a chain reaction to other currency pairs closely related to Sino-US trade, enhancing the overall market activity.
(II) Financial support policies to help regional financial opening up
People's Bank of ChinaThe Bank, the State Administration for Financial Regulation, the China Securities Regulatory avaforexcn.commission, the State Administration of Foreign Exchange, and the Guangdong Provincial People's Government jointly issued the "Opinions on Financial Support to Guangzhou Nansha to Deepen avaforexcn.comprehensive Cooperation in Guangdong, Hong Kong and Macao for the World". It clearly states that Nansha will support benchmarking against international high-standard institutional rules, explore institutional opening pilot projects in the financial field, implement the pre-entry national treatment plus negative list management model, streamline restrictive measures, and support qualified foreign institutions to participate in the financial business pilot. This policy is a major benefit for regional financial institutions in Guangdong, Hong Kong and Macao, especially those leading institutions involving cross-border settlement, digital finance and cross-border asset management businesses, which will usher in more opportunities for business expansion. In the long run, the pilot program of institutional opening up will accelerate the internationalization of the RMB, promote the formation of a financial ecosystem in line with the international level in the Greater Bay Area, enhance the resource allocation capabilities of China's capital market around the world, and attract more international capital inflows, thereby having a positive and far-reaching impact on the flow of funds in the foreign exchange market and the stability of the RMB exchange rate.
2. Significant negative news
(I) The Japanese yen exchange rate continued to be under pressure and hit a new low
As of May 13, the Japanese yen exchange rate was extremely weak, with 100 yen being exchanged for only 4.9546 yuan, setting a new low in the past decade. The Bank of Japan has long adhered to loose monetary policies and maintained a low interest rate or even negative interest rate environment, which makes the yen a "low-cost financing currency" in the eyes of international capital. After borrowing a large amount of funds into the yen and investing in other assets with higher returns, resulting in an oversupply of the yen in the foreign exchange market. In addition, the Japanese economy itself faces many challenges, such as severe population aging, shrinking domestic consumer market, and insufficient momentum for economic growth, which further weakens the support base of the yen. This long-term weakness pattern is difficult to reverse in the short term. If the Bank of Japan does not adjust the direction of monetary policy, the exchange rate of the yen against other major currencies may continue to decline, triggering a wave of selling off yen assets in the foreign exchange market and impacting the stable structure of the global foreign exchange market.
(II) Worries about global economic slowdown suppress the Australian dollar
Although iron ore prices have rebounded recently, bringing some support to the Australian dollar, concerns about the global economic slowdown are like the high sword of Damocles, continuing to suppress the Australian dollar exchange rate. As a resource exporter, Australia's economy is highly dependent on the global economic situation. When global economic growth is weak, demand for Australian resource products will significantly decrease, which will affect its export revenue and economic growth prospects. At the same time, the RBA has maintained its monetary policy unchanged, and the governor warned that the economic outlook is still full of uncertainty, and market expectations for the Australian dollar's interest rate hike continue to be sluggish, which also makes the Australian dollar unable to avaforexcn.compete with other currencies in terms of interest rate advantages. Under the interweaving of multiple factors, the exchange rates of major currencies such as the Australian dollar are facing great downward pressure and are at a disadvantage in the fluctuations of the foreign exchange market. Investors' confidence in Australian dollar assets is frustrated, and capital outflows are windyAlmost intensified.
The foreign exchange market is affected by the avaforexcn.combined effect of a variety of avaforexcn.complex factors, and changes in the news always affect the currency trend. During the transaction process, investors need to avaforexcn.comprehensively consider various positive and negative news, pay close attention to macroeconomic data, central bank policy trends, and geopolitical situation, so as to accurately grasp the pulse of the market and formulate reasonable investment strategies.
The above content is all about "【Ava Aihua Foreign Exchange Platform】: Collection of positive and negative news that affects 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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