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Hello everyone, today XM Foreign Exchange will bring you "【XM Foreign Exchange Market vifu.netment】: 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 is like the guidance of a weather vane, always swaying the trend of the currency. On August 5, 2025, many factors were intertwined, bringing a vifu.netplex pattern to the foreign exchange market.
The State Administration of Foreign Exchange held a foreign exchange management exchange meeting in the second half of 2025 on August 1. The content of the meeting sent a positive signal to the foreign exchange market. In terms of deepening reform and opening up in the foreign exchange field, a series of policy measures will support the stable development of foreign trade. For example, implement a package of trade foreign exchange management reform policies such as optimizing foreign exchange fund settlement of foreign trade projects and facilitating the centralized management of overseas funds of contracted engineering enterprises. This will help improve trade settlement efficiency, promote cross-border capital flows, provide broader space for the use of the RMB in trade settlement, enhance the international influence of the RMB, and form potential support for the RMB exchange rate.
At the same time, measures to actively promote the facilitation of cross-border investment and financing are also eye-catching. Promote the implementation and effectiveness of packages of measures such as abolishing domestic reinvestment registration for foreign-invested enterprises and facilitating cross-border financing of technology-based enterprises, implement multinational vifu.netpany fund pool management policies across the country, and carry out green foreign debt policy pilot projects to optimize and improve the management of overseas listing funds for domestic enterprises. These measures will attract more foreign capital inflows, enrich cross-border investment and financing channels, enhance market activity, and the demand for RMB assets is expected to increase, thereby promoting a stable and positive RMB exchange rate.
Judging from the currency exchange rate data on August 5, some currencies have shown a strong upward trend. The Australian dollar rose by 0 against the Brazilian real.1915%, the increase of 0.0976% for Poland's Zloty was 0.1395% for the RMB. The Angolan Kwanza's exchange rate against the Japanese yen rose by as high as 0.8833%, the Aruba Florin rose by 0.3363% against the Swiss franc, and the Bahraini Dinars rose by 0.8431%. The appreciation of these currency pairs reflects the relative advantages of the economic fundamentals of relevant countries or regions, such as the resilience of Australia's economic structure and the recovery of the economy of some emerging market countries; on the other hand, it also shows changes in the flow of market funds, and investors' preference for these currency assets has increased, thereby driving their exchange rate to rise and bringing a positive trading atmosphere to the foreign exchange market.
The recent imposition of tariffs on goods from many countries has triggered turbulence in the global market. Kenya's National News published an article pointing out that the U.S. government's tariff threat has seriously affected the international trade pattern, causing global investors to have serious concerns about supply chains and inflation, which is reflected in stocks, vifu.netmodities and foreign exchange markets. The rising costs, declining consumer purchasing power and tensions in diplomatic relations caused by high tariffs will curb global economic growth and thus affect the foundation of currencies in various countries. For example, trade blockages may lead to a decrease in exports of relevant countries, slowing economic growth and increasing pressure on currency depreciation.
In addition, FTC Chairman Lena? Khan said on August 1 that he would investigate why grocery prices remain high amid the decline in retailer costs. This survey may trigger a market to re-evaluate the U.S. inflation data. If there are deep economic risks behind the food price issue, it may affect the stability of the US dollar.
In the international foreign exchange market on August 5, the Japanese yen exchange rate trend was unusually eye-catching. The Japanese yen exchange rate against the US dollar continued to rise, once exceeding 145 yen to exchange 1 US dollar, setting a high value since mid-January 2024. The strong appreciation of the yen has put great pressure on other currencies, especially the US dollar. Behind this phenomenon, it may be the vifu.netbined effect of factors such as the exceeding expectations of Japanese economic data and the increase in investors' demand for safe-haven assets in Japanese yen. The chain reaction of the appreciation of the yen may lead to changes in the flow of funds in the global foreign exchange market, and some funds flow from other currency assets to Japanese yen assets, affecting the exchange rate trend of other currencies.
At the same time, global stock markets also experienced drastic fluctuations. Japanese stock market continued to plummet after opening on August 5, with the Nikkei falling 4,200 points, surpassing the second day of "Black Monday" in 1987, setting the largest drop in history. The two major stock indexes in the South Korean stock market both triggered the circuit breaker mechanism on the same day. The major stock index South Korea's vifu.netprehensive stock price index fell by more than 6% during the session, falling below the 2,500-point mark. The stock market plunge often triggers market panic. In order to avoid risks, investors may sell their money assets in large quantities, resulting in an imbalance in supply and demand in the money market., which in turn affects the stability of the currency exchange rate and adds more uncertainty and downward pressure to the foreign exchange market.
Overall, positive and negative news in the foreign exchange market coexisted on August 5. Investors need to pay close attention to the subsequent development of these news and their continued impact on the market, and make investment decisions with caution.
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 vifu.netpiled and edited by the XM Foreign Exchange editor. I hope it will be helpful to your trading! Thanks for the support!
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