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Hello everyone, today Avatrade Aihua Foreign Exchange will bring you "【Avatradescn】: 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 continues to affect the trend of the currency, and investors need to pay close attention to the latest developments to grasp the pulse of the market. On July 4, based on recent events, a series of positive and negative news are affecting the foreign exchange market structure.
1. Good news
(I) RMB-related positive news
Cross-border payment connectivity was launched: On June 22, the cross-border payment connectivity jointly promoted by the People's Bank of China and the Hong Kong Monetary Authority was launched. The project supports residents of the two places to realize convenient remittances of RMB and Hong Kong dollars under current accounts through online channels such as mobile banking and online banking, relying on mobile phone numbers, bank accounts, etc., and real-time remittances within a certain amount. This measure has improved the efficiency of cross-border payments between the two places, facilitated economic and trade activities and personnel exchanges, consolidated Hong Kong's international financial center and offshore RMB business hub, and has positive significance for the cross-border use of the RMB and the improvement of international status.
Research on RMB foreign exchange futures: People's Bank of China President Pan Gongsheng and China Securities Regulatory www.avaforexcn.commission Chairman Wu Qing recently said that they will jointly promote RMB foreign exchange futures research and promote the improvement of the product sequence of the foreign exchange market. If RMB foreign exchange futures are introduced, on the one hand, it will help financial institutions and foreign trade enterprises better manage exchange rate risks and reduce the uncertainty of exchange rate fluctuations in trade; on the other hand, it can expand cross-border transaction settlement scenarios, popularize the use of RMB in international trade, activate the liquidity of the offshore RMB market, strengthen the function of the RMB as a denomination unit, increase the RMB's pricing power over major global www.avaforexcn.commodities, and enhance the international attractiveness of the RMB as a financial asset.
Cross-borderwww.avaforexcn.comSocial Administration of Foreign Exchange Reform: On June 18, the State Administration of Foreign Exchange solicited public opinions on the "Notice of the State Administration of Foreign Exchange on Deepening the Reform of Foreign Exchange Management of Cross-border Investment and Financing (Draft for www.avaforexcn.comments)". The reform policies cover three aspects: investment, financing and payment convenience, including abolishing the registration of basic information on the preliminary expenses of domestic direct investment, expanding cross-border financing convenience. If these policies are implemented, they will further facilitate business entities to carry out cross-border investment and financing activities, optimize the business environment, and indirectly enhance the attractiveness of the RMB in cross-border business.
(II) Positive benefits related to economic cooperation
< p>The United States and Vietnam reached a trade agreement. Although Trump issued a statement saying that all Vietnam's exports to the United States will face at least 20% tariffs, Vietnam "completely opens the market" to the United States. The conclusion of this agreement has made some investors optimistic about the global trade prospects. It is expected that global economic activities will heat up due to further trade exchanges, thereby stimulating demand for www.avaforexcn.commodity currencies such as the Australian dollar and New Zealand dollar, and bringing potential support to related currencies.2. Negative news
(I) Uncertainty caused by geopolitics
Iran's relations with the International Atomic Energy Agency are tense: the Iranian president approved the suspension of cooperation with the International Atomic Energy Agency, and the geopolitical situation in the Middle East has become tense again. As an important oil-producing region in the world, the region is geopolitical. Instability may affect oil supply, which in turn impacts the pace of global economic recovery and triggers market risk aversion sentiment. When risk aversion sentiment heats up, funds often flow to traditional safe-haven currencies such as the US dollar and the Japanese yen, which has certain suppression on other currencies.
French political turmoil: Previously, the negotiations on the fiscal case with the far-right "National Union" collapsed, French Prime Minister Michelle Barnier used Article 49.3 of the Constitution to forcibly pass the budget, which triggered the French left-wing alliance "New People's Front" and the far-right "National Union" to support the vote of distrust in it. As an important country in the euro zone, political turmoil may affect the stability and coherence of economic policies in France and even the euro zone, hit market confidence in the euro, and caused the euro to face downward pressure on the foreign exchange market.
(II) ) Economic data performed poorly
The increase in U.S. crude oil inventories and decline in gasoline demand: EIA data shows that U.S. crude oil inventories unexpectedly increased by 3.8 million barrels to 419 million barrels last week, far exceeding the market expectations of 1.8 million barrels, while gasoline demand fell to 8.6 million barrels per day, lower than the market health standard of the peak summer driving season 9 million barrels per day. As the world's largest oil consumer, the United States has poor energy market data, reflecting the weakness on the economic demand side, which may drag down U.S. economic growth expectations and pose a certain negative for the US dollar.
Slow global economic recovery: the global economic recovery process is slow and unbalanced, and this situation has led to intensifying volatility in global financial markets. The weak economic growth has reduced investors' preference for risky assetsSome emerging market currencies face pressure of capital outflow due to their relatively weak economic foundation, and the risk of currency depreciation increases.
Overall, the foreign exchange market faces a www.avaforexcn.complex news environment on July 4. When making trading decisions, investors need to www.avaforexcn.comprehensively consider the interweaving impact of these positive and negative news, and pay attention to follow-up updates such as the regular policy briefing of the State Council held at 3 pm on July 4, so as to more accurately grasp market trends.
The above content is all about "【Ava Aihua Foreign Exchange】: Collection of positive and negative news that affects the foreign exchange market". It was carefully www.avaforexcn.compiled and edited by the Avatrade Foreign Exchange editor. I hope it will be helpful to your trading! Thanks for the support!
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