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Hello everyone, today XM Foreign Exchange will bring you "【XM Foreign Exchange Market Comment】: 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:
Uncertainty in tariff policy: US President Trump announced the postponement of some tariff measures, and the plan to impose higher tariffs on dozens of economies for 90 days was suspended, and a unified 10% tariff was imposed. However, the uncertainty of policies has hurt the global economy, uncertainty has negatively affected business and consumer confidence, and the uncertainty of the global trade chain has intensified, which has led to a rise in market risk aversion sentiment, and funds flow to safe-haven assets, which poses a negative impact on risky currencies.
Worries about the U.S. economic outlook: Tariff concerns triggered market concerns about the U.S. economic outlook. The three major U.S. stock indexes fell sharply on April 10, with the Dow Jones Industrial Average closing down 2.5%, the S&P 500 falling 3.46%, and the Nasdaq Composite Index closing down 4.31%. The sharp fluctuations in the stock market reflect the market's pessimistic expectations of the economy, which may lead to investors reducing their allocation of US dollar assets, thereby putting pressure on the US dollar exchange rate.
EU economic growth rate has been lowered: The EU suspends countering tariffs against the United States for 90 days, and Germany's economic growth rate is expected to be lowered to 0.1%. A slowdown in European economic growth may weaken the appeal of the euro and have an adverse impact on the euro exchange rate.
U.S. dollar weakened: on April 10, the US dollar index continued to decline during the day, falling by more than 2% at one point, reaching near the 100 mark, and finally closed down 1.97% to 100.93. The sharp decline in the US dollar has caused other non-US currencies to appreciate relatively, which is good news for investors holding non-US currencies. For example, the Swiss franc rose nearly 4%, while the euro and yen rose more than 2%.
U.S. rate cut expectations strengthen: UBS expectsThe Fed may cut interest rates by 75 to 100 basis points this year. If the market's expectations for the Fed's interest rate cut further strengthened, it will lead to a decline in the yield on US dollar assets, attracting funds to flow out of the US dollar, thereby pushing the US dollar exchange rate to fall, which will benefit other currencies.
Asian stock market performed well: On April 10, A-shares closed higher across the board, the Shanghai Composite Index rose by more than 1% and returned to 3200 points, and the Hengke Index closed up by more than 2%. The good performance of Asian stock markets reflects the relative stability and resilience of the Asian regional economy, and may attract capital to flow into the Asian market and have a certain supporting role for Asian currencies.
The above information is compiled from the public content and is for reference only. The foreign exchange market is affected by a combination of various factors. When making trading decisions, investors need to pay close attention to changes in the global economic situation, political events, central bank policies, etc. in order to adjust their investment strategies in a timely manner.
The above content is all about "【XM Foreign Exchange Market Review】: Collection of positive and negative news that affects the foreign exchange market". It was carefully compiled and edited by the XM Foreign Exchange editor. I hope it will be helpful to your trading! Thanks for the support!
Due to the author's limited ability and time constraints, some content in the article still needs to be discussed and studied in depth. Therefore, in the future, the author will conduct extended research and discussion on the following issues: