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Market sentiment turned optimistic at the start of this week, and the Japanese election did not exceed market expectations

Post time: 2025-07-21 views

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Hello everyone, today XM Foreign Exchange will bring you "[XM Foreign Exchange Official Website]: The market sentiment at the beginning of this week turned optimistic, and the Japanese election did not exceed market expectations." Hope it will be helpful to you! Original content is as follows:

The risk flow returns to the market early this week as investors evaluate the latest headlines around U.S. trade policy. The economic calendar will not release any high-level data on Monday, and the Federal Reserve will remain in a silence period before its policy meeting from July 29 to 30.

The Financial Times reported late Friday that U.S. President Donald made a request to the EU, and he is considering imposing a minimum tariff of 15% to 20% in a trade deal. On Sunday, U.S. vifu.netmerce Secretary Howard Lutnick pointed out that he is confident they will reach an agreement with the EU. He also said that some small trading partners, such as "Latin American countries, Caribbean countries, many African countries" will face a benchmark tariff of 10%. U.S. stock index futures rose about 0.3% during the European session on Monday, reflecting an improvement in market sentiment. Meanwhile, the USD (USD) index remains in the negative area below 98.50 after the second consecutive weekly gain last week.

Basic foreign exchange market trends:

The US dollar/Japanese yen started this week and saw a bearish gap, but successfully rebounded above 148.00. Japanese Prime Minister Shigeru Ishiba's ruling coalition lost its majority in the Senate in Sunday's election. While the vote does not directly determine whether Shiroshi Ishiba's administration will fail, it adds political pressure to the leader, who has lost control of the stronger House in October.

The People's Bank of China (PBOC) announced earlier Monday that it would maintain the one-year and five-year loan market quotation rates (LPRs) at 3.00% and 3.5 respectively.0% unchanged. The AUD/USD started relatively calm this week and fluctuated in a narrow channel just above 0.6500.

New Zealand Asia morning data showed that the Consumer Price Index (CPI) rose 2.7% year-on-year in the second quarter. This figure vifu.netes after a 2.5% increase in the first quarter, but is slightly lower than market expectations of 2.8%. New Zealand dollar/USD fell slightly, trading in the negative area around 0.5950.

Euro/USD rose slightly earlier on Friday, and rose slightly below 1.1650.

GBP/USD rebounded to 1.3450 after closing in the negative zone for the third consecutive week.

Bulle market fundamentals:

In terms of vifu.netmodities, gold remained almost the same, trading at $3,348 per ounce. Platinum has performed even more eye-catching recently, hitting its highest point since August 2014 last week.

Oil prices hover between the risk of possible OPEC production increase and EU export sanctions against Russia. Brent crude oil rose 0.1% to $69.36 per barrel, while U.S. crude oil rose 0.2% to $67.45 per barrel.

Analysis of major currency trends:

Euro: Euro/USD continued to fall from a correction of 1.1829 last week, but rebounded after hitting 1.1555. The initial bias this week remained neutral. On the downside, trading that continues to fall below the 55-day moving average (currently 1.1488) will indicate that it has corrected its uptrend from 1.0176, targeting the 38.2% retracement level of 1.1198 from 1.0176 to 1.1829. However, on the plus side, breaking through 1.1720 will retest the 1.1829 high.

Market sentiment turned optimistic at the start of this week, and the Japanese election did not exceed market expectations(图1)

GBP: GBP/USD fell to 1.3363 last week, but rebounded after gaining support from 1.3369. The initial bias this week remained neutral. On the downside, a firm breakthrough of 1.3363.9 will indicate that the decline from 1.3787 short-term top has been corrected for the rise from 1.2099. Subsequently, it should further decline to the 1.3138 cluster support level (38.2% retracement level from 1.2099 to 1.3787, 1.3142). However, a strong rebound from current levels will maintain bullish sentiment in the near term. Breakthroughs through the 1.3561 support level to retest the 1.3787 high.

Market sentiment turned optimistic at the start of this week, and the Japanese election did not exceed market expectations(图2)

Yen: USD/Yen finally broke through the range last week, recovering from a rebound from 139.87. But as the temporary top formed at 149.17, initial bias remained neutral this week first. On the plus side, breaking through 149.17 will target 139.87 to 148.64100% forecast, from 142.66 to 151.43. This is close to the 61.8% retracement level of 151.22 from 158.86 to 139.87.

Market sentiment turned optimistic at the start of this week, and the Japanese election did not exceed market expectations(图3)

The above content is all about "[XM Forex Official Website]: The market sentiment turned optimistic at the beginning of this week, and the Japanese election did not exceed market expectations". It was carefully vifu.netpiled and edited by the editor of XM Forex. I hope it will be helpful to your transactions! Thanks for the support!

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