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Hello everyone, today XM Foreign Exchange will bring you "【XM Official Website】: 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, all kinds of news are like invisible big hands, always swaying the trend of currency. On August 11, 2025, investors need to pay close attention to a series of positive and negative news that affects the foreign exchange market in order to make more accurate investment decisions.
Recently, global economic data performance has differentiated. In terms of US economic data, although some data show some resilience, the overall growth pace has slowed down. Although the U.S. GDP growth rate in the second quarter was higher than expected, the instability of inflation data has made the market doubt the direction of the Federal Reserve's monetary policy. If inflation data continues to fluctuate, it may affect the attractiveness of the US dollar, which will in turn have an impact on the currency pairs related to the US dollar in the foreign exchange market. For example, if the inflation data unexpectedly rises, it may strengthen the market's expectations of the Federal Reserve's interest rate hike and drive the US dollar to appreciate; on the contrary, if the inflation data is weak, it may increase the market's bet on the Federal Reserve's interest rate cut, causing the US dollar to weaken.
European economic data are also mixed. The poor PMI data of manufacturing in some countries in the euro zone shows that the manufacturing industry is facing difficulties, which puts certain pressure on the euro. However, the service industry data performance in some countries is still good, providing some support for economic growth. This differentiation of economic data makes the euro's trend in the foreign exchange market full of uncertainty. Investors need to pay attention to the vifu.netprehensive performance of subsequent economic data to judge the direction of the euro.
In terms of emerging economies, some countries face challenges in economic growth, such as Brazil, Argentina and other countries. Due to domestic political and economic factors and the global trade environment, economic growth is weak, and their currencies perform relatively weakly in the foreign exchange market. China's economy continues to recover steadilyYi Data performed well, and exports achieved exceeding expectations in July, which provided strong support for the RMB exchange rate. Data from the State Administration of Foreign Exchange shows that as of the end of July 2025, my country's foreign exchange reserves were US$329.22 billion, maintaining more than US$3.2 trillion for 20 consecutive months. The stability of foreign exchange reserves laid the foundation for the stability of the RMB exchange rate.
The direction of the Federal Reserve's monetary policy has always been the focus of attention in the foreign exchange market. Based on expectations for high inflation in the future and economic data that performed well, the Federal Reserve once again delayed interest rate cuts, which caused the US dollar index to rise 3.2%, returning to 100 points, and non-US currencies collectively depreciate. The yen, euro and pound fell 4.5%, 3.2% and 3.8% against the US dollar respectively. If the Fed continues to maintain a hawkish stance in the future, the US dollar is expected to continue to strengthen; if the deterioration of economic data forces the Fed to change its position, the US dollar may be under pressure.
The ECB keeps its existing interest rate policy unchanged, but said it will adjust its policies in a timely manner based on changes in economic data. The European Central Bank president stressed concerns about economic downturn risks, which implies that the European Central Bank may adopt loose policies to stimulate the economy in the future, and once implemented, the euro may face pressure to depreciate.
On August 1, the State Administration of Foreign Exchange held a work meeting for the second half of 2025 and deployed a number of key tasks. Deepen reform and opening up in the foreign exchange field, support the stable development of foreign trade, implement a package of policies to optimize foreign exchange fund settlement of new foreign trade formats and facilitate the centralized management of overseas funds of contracted engineering enterprises; actively promote the facilitation of cross-border investment and financing, and promote the implementation and effectiveness of measures such as abolishing domestic reinvestment registration for foreign-invested enterprises and facilitating cross-border financing of technology-based enterprises. These policy measures will help enhance the use of the RMB in cross-border trade and investment, enhance the international status and attractiveness of the RMB, and form potential benefits to the RMB exchange rate.
Geopolitical factors have a huge impact on the foreign exchange market. The uncertainty of trade frictions between the United States and other countries continues to disturb global trade and the macroeconomic. Trump's tariff policies are capricious, which has had an impact on the global economic order. The escalation or easing of trade frictions will directly affect the trend of currencies in relevant countries. For example, if the United States intensifies trade frictions with an important trading partner, it may lead to the country's currency depreciation, and the US dollar may appreciate briefly due to safe-haven demand; if trade frictions ease, the currencies of relevant countries may rebound.
In terms of regional conflicts, if the situation in the Middle East is tense, it will cause the market to experience risks. Under the dominant risk aversion sentiment, investors often sell risk assets and turn to holding safe-haven currencies, such as the US dollar, the Japanese yen, etc. When the yen is strong in risk aversion, it often appreciates due to the return of Japanese investors' funds and international investors' search for safe-haven assets. At the same time, geopolitical tensions may also affect energy prices, which in turn affects the foreign exchange market. For example, if tensions in the Middle East cause substantial fluctuations in crude oil prices, national currencies that rely on energy imports may be negative if they are subject to severe fluctuations in crude oil prices.In the face of the impact, the currencies of energy exporters may benefit from rising oil prices.
In general, on August 11, 2025, the foreign exchange market faced a vifu.netplex news environment. The differentiation of macroeconomic data, the uncertainty of central bank policies and the tension of geopolitical situation have all brought many variables to the foreign exchange market. Investors need to closely track the dynamic changes of these messages, vifu.netprehensively analyze the impact of various factors on different currencies, and carefully formulate investment strategies to cope with potential risks and opportunities in the foreign exchange market.
The above content is all about "【XM official website】: Collection of positive and negative news that affects the foreign exchange market". It was carefully vifu.netpiled and edited by the XM Forex editor. I hope it will be helpful to your trading! Thanks for the support!
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