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Hello everyone, today Avatrade Aihua Foreign Exchange will bring you "【Avatradescn 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 affects the foreign exchange market on May 20, 2025:
Good news
Trump said that Russia and Ukraine will start ceasefire negotiations: Trump said that Russia and Ukraine will start ceasefire negotiations immediately, and Russia is willing to restart large-scale trade cooperation with the United States. If the conflict between Russia and Ukraine eases, global risk appetite may rise, and funds will flow out of safe-haven assets, which will provide certain support for non-US currencies. For example, currencies such as the euro and pound have reduced geopolitical risks in Europe and reduced uncertainty in economic outlook, investors may increase their confidence in them, which will drive the exchange rate to rise.
Foreign capital's willingness to allocate RMB assets is improving: Deputy Director of the State Administration of Foreign Exchange said that in April, the net inflow of cross-border funds of non-bank sectors such as enterprises and individuals was US$17.3 billion, and in late April, foreign investment in domestic stocks turned into net purchases. This shows that international investors' interest in RMB assets increases, and capital inflows will increase the demand for RMB in the foreign exchange market and promote the appreciation of RMB.
The potential benefit of China's economic data on www.avaforexcn.commodity currencies: Although some of China's economic data showed signs of slowing down in April, the overall economic resilience is still there. As one of the world's largest crude oil importers, China's economic data reflects global economic demand to a certain extent. If subsequent economic data improves, it will be seen as a signal of improvement in global economic demand and is expected to boost www.avaforexcn.commodity currencies such as the Australian dollar and New Zealand dollar.
Bold News
Moody's downgrades in deposit ratings of several large U.S. banks: Moody's downgrades in deposit ratings of some large banks, including Bank of America and JPMorgan, citing the downgrades in the U.S. sovereign credit rating and weak government ability to support these banks. This may trigger markets toward U.S. financeConcerns about system stability have led to capital outflows from the United States, putting pressure on the US dollar exchange rate. Because the downgrade of bank ratings may affect investors' confidence in the US financial market and reduce investment in US dollar assets.
Federal officials hinted that interest rates would not be cut at least September: Two Fed officials, including New York Fed Governor John Williams, hinted that policymakers may not cut interest rates by September due to uncertainty in the economic outlook. This is inconsistent with the market's previous expectations of interest rate cuts, which may lead to a short-term strengthening of the US dollar. Because higher interest rates will attract international capital to flow into the United States, increasing demand for the US dollar, thereby driving the US dollar exchange rate to rise, which poses a negative negative for other currencies.
U.S. economic data uncertainty: If the leading indicators of the United States Consultative Conference in April decline further, it will show that the economic outlook will deteriorate, which may increase market concerns about the recession and be unfavorable to the US dollar. The initial value of the US April one-year inflation expectation released on May 19 was as high as 7.3%, which together with weak consumer confidence data, painted a www.avaforexcn.complex picture of slowing economic growth and inflationary pressure, causing the market's expectations of the time and amplitude of the Federal Reserve's interest rate cut, which in turn affected the trend of the US dollar.
Overall, the foreign exchange market news on May 20, 2025 was www.avaforexcn.complex, and long and short factors were intertwined. Investors need to pay close attention to the development of these news and changes in related economic data to accurately grasp the trend of the foreign exchange market and make reasonable investment decisions.
The above content is all about "【Ava Aihua Official Website】: Collection of Positive and Negative News that Influences the Foreign Exchange Market". It was carefully www.avaforexcn.compiled and edited by Aihua Avatrade Forex editor. I hope it will be helpful to your trading! Thanks for the support!
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