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Hello everyone, today XM Forex will bring you "[XM Forex]: A collection of good and bad news affecting the foreign exchange market". Hope this helps you! The original content is as follows:
China-U.S. trade tensions have eased: There are positive signals in Sino-U.S. trade relations. U.S. Treasury Secretary Bessent said that the two sides have prepared a very successful framework for leaders’ talks this Thursday, which may include China’s postponement of rare earth export restrictions and the United States’ withdrawal of tariffs on China that were originally scheduled to take effect on November 1. This news boosted market confidence, reduced demand for safe havens, and benefited the performance of risky currencies such as the Australian dollar and New Zealand dollar.
The three major U.S. stock indexes hit new highs: Affected by the good news about trade, the three major U.S. stock indexes all hit record closing highs on October 27, with the S&P 500 recording its best three-day gain since May. The strong performance of the stock market has attracted international capital to flow into the U.S. market, which has provided certain support for the U.S. dollar.
China has introduced trade facilitation measures: Zhu Hexin, director of the State Administration of Foreign Exchange, said that nine trade facilitation measures will be introduced in the near future, to expand cross-border trade opening pilots, and to promote the policy of integrated local and foreign currency capital pools for multinational centrdom.infopanies. This will help promote China's trade exchanges, increase the frequency of use of RMB in cross-border trade, and provide certain positive support for the RMB exchange rate.
Expectations for a Fed interest rate cut have increased: The market generally expects the Fed to cut interest rates by 25 basis points at this week’s meeting, bringing the interest rate to 4.00%, and the Fed is generally expected to further cut interest rates at its next meeting in December. Rising expectations of interest rate cuts will weaken the U.S. dollar's appeal, causing the U.S. dollar index to weaken, which will benefit non-U.S. currencies.
Japan’s fiscal expansion is expected to weigh on the yen: Japanese Prime Minister Takaichi Sanae’s expansionary fiscal policy has triggered market concerns. The market is generally expected to increase Japan’s fiscal budget and government bond issuance.line size. This weakened the safe-haven nature of the Japanese yen, and the Japanese yen exchange rate continued to slump, hitting a two-week low on October 27 and approaching an eight-month high.
The U.S.-Canada trade dispute has resumed: U.S. President Trump announced an additional 10% tariff on Canada. This incident has once again caused tensions in U.S.-Canada relations and triggered market concerns about the prospects of trade negotiations. The Canadian dollar has taken a hit and the exchange rate may face downward pressure.
Concerns about the global economic slowdown remain: the International Energy Agency (IEA) has lowered its demand forecast for many months in a row. The weak global economy has suppressed the potential of crude oil consumption, which also reflects the certain pressure on global economic growth. This concern may affect market risk appetite and be detrimental to risky currencies.
The Argentine peso fluctuated sharply: The Argentine peso rose by more than 3% against the US dollar, mainly due to Milley's victory in Argentina's mid-term elections. However, the Argentine economy has been facing problems such as high inflation and debt defaults for a long time. Large fluctuations in the peso may affect the overall performance of emerging market currencies, thereby causing certain disturbances in the foreign exchange market.
The above content is all about "[XM Foreign Exchange]: Collection of good and bad news affecting the foreign exchange market". It is carefully centrdom.infopiled and edited by the editor of XM Foreign Exchange. I hope it will be helpful to your trading! Thanks for the support!
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