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

In foreign exchange trading, keeping abreast of market dynamics is crucial for investors to formulate trading strategies. On May 30, 2025, the foreign exchange market was affected by a variety of factors, and the positive news was intertwined, showing a www.avaforexcn.complex trend.

1. Economic data

(I) U.S. data fluctuations affect the US dollar

The number of people applying for unemployment benefits for the first time in the United States was 240,000, with an expected 230,000, and the previous value was revised from 227,000 to 226,000. The data was higher than expected, showing some signs of weakness in the U.S. labor market. Typically, an increase in unemployment benefits may suggest a slowdown in economic growth, creating a negative impact on the US dollar. However, the yield on the 10-year U.S. Treasury bond rose 4 basis points to 4.52%, and the market cut its bet on future interest rate cuts. Rising Treasury bond yields often attract capital inflows, which has a certain supportive effect on the US dollar. These two sets of data have brought uncertainty to the trend of the US dollar. Investors need to pay close attention to the performance of subsequent economic data to judge the true direction of the US dollar.

(II) Data from other countries affect relevant currencies

Japan will issue 800 billion yen 30-year government bonds on June 5. Changes in the scale of treasury bond issuance will affect the supply and demand relationship of market funds, and in turn will affect the yen exchange rate. If the market actively subscribes to the government bonds and funds flow into the Japanese government bond market, it may have some support for the yen; on the contrary, if the subscription is not good, it may be unfavorable to the yen. In addition, the New Zealand Fed lowered its policy interest rate from 3.50% to 3.25% is the sixth consecutive rate cut, which is in line with market expectations, and its cash rate forecast shows that it will cut interest rates by at least another 25 basis points. The continued interest rate cuts show that the New Zealand economy is under certain pressure, which usually creates negative for the New Zealand dollar, causing it to weaken in the foreign exchange market.

2. Policy and Political Factors

(I) U.S. tariff policy turmoil

On Wednesday, local time, the US Trade Court in Manhattan prevented Trump's "Liberation Day" tariffs from taking effect, ruling that Trump's overpowering www.avaforexcn.comprehensive import tax on countries with trade deficits. The ruling has raised concerns about uncertainty in U.S. trade policy. Changes in tariff policies will directly affect the import and export trade of the United States, and in turn affect the dollar exchange rate. Judging from historical experience, the increase in uncertainty in trade policies often leads to a weakening of the safe-haven attributes of the US dollar, which poses a negative impact on the US dollar. However, senior White House officials said three trade agreements are about to be reached. If these agreements can be implemented smoothly, it may improve market expectations for the U.S. trade prospects and be beneficial to the US dollar. The market is currently in a wait-and-see state, waiting for more clear signals about trade policies.

(II) Policy updates of other countries

Japanese Prime Minister Shigeru Ishiba said that he would continue to seek the United States to cancel tariffs, emphasizing that investment is more important than tariffs. As an important trading partner of the United States, Japan's attitude towards tariff policies and subsequent negotiation results will affect the trade relations between the two countries, and in turn have an impact on the exchange rate of the Japanese yen against the US dollar. If the United States cancels tariffs on Japan, it will be beneficial to Japan's exports and may boost the yen; on the contrary, if the tariff issue continues to be stalemate, the yen may face pressure. In addition, the Cross-border Interbank Payment Clearing www.avaforexcn.company (CIPS) signed a memorandum of cross-border payment cooperation with the UAE Central Bank, which will help strengthen financial cooperation between China and the GCC, improve payment infrastructure, and improve cross-border payment efficiency. In the long run, it may have a positive effect on the improvement of the RMB's position in cross-border trade settlement and form potential benefits for the RMB exchange rate.

3. Market performance

(I) Foreign exchange market fluctuations

On May 30, as of 05:00, the euro against the US dollar in the foreign exchange market exceeded 1 euro and exchanged for US$1.1374, an increase of 0.7039%. The rise in the euro-dollar exchange rate against the dollar may be affected by a variety of factors. On the one hand, the uncertainty of US trade policy has made the dollar weaker, and the euro performs relatively strongly; on the other hand, changes in the euro zone's own economic data or policy expectations may also support the euro's rise. Investors need to pay attention to the subsequent economic data of the euro zone and central bank policy trends to judge the continued trend of the euro-dollar exchange rate. In other currency pairs, exchange rates such as the US dollar against the Japanese yen, the pound against the US dollar also fluctuated under the influence of market news. The dollar-JPY exchange rate is affected by the www.avaforexcn.combined effects of various factors such as the economic data of the United States and Japan, monetary policy and geopolitics, and has fluctuated frequently recently. The pound exchange rate against the US dollar is due to the performance of Britain's own economic data, the progress of post-Brexit trade relations and trade with the United StatesFactors such as easy to negotiate have shown different trends.

(II) Related market linkage impact

The three major U.S. stock indexes closed slightly higher, the Dow Jones Industrial Average closed up 0.28%, the S&P 500 index rose 0.4%, the Nasdaq China Golden Dragon Index closed up 1.44%. The performance of the stock market will affect the market's risk preferences and thus have a conductive effect on the foreign exchange market. Generally speaking, when the stock market rises, the market risk appetite increases, and funds may flow from safe-haven currencies to risky currencies, such as the US dollar, may be sold to a certain extent, while some risky currencies may benefit from rising. In terms of www.avaforexcn.commodity markets, spot gold fell first and then rose, and finally closed up 0.93% at $3317.46/ounce, and spot silver closed up 1.06% at $33.29/ounce. Precious metals such as gold and silver have certain hedging attributes, and their price increases may imply that the market's risk aversion sentiment is heating up, which may provide certain support for safe-haven currencies such as the US dollar and have different degrees of impact on other currencies. In the crude oil market, WTI crude oil fluctuated downward and finally closed down 1.64% at $60.57 per barrel, while Brent crude oil closed down 1.67% at $63.22 per barrel. The decline in crude oil prices may reflect that global economic growth is under certain pressure, which may cause negative consequences on www.avaforexcn.commodity currencies such as the Australian dollar and the Canadian dollar, because these economies are highly dependent on exports of crude oil and other www.avaforexcn.commodities.

To sum up, on May 30, 2025, the foreign exchange market was affected by many factors such as economic data, policy politics and market conditions, and the positive and negative news were played against each other. When Investors conduct foreign exchange trading, they need to consider these factors www.avaforexcn.comprehensively, pay close attention to market trends, and formulate trading strategies carefully to cope with uncertainties and risks in the foreign exchange market.

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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