Trusted by over 15 Million Traders
The Most Awarded Broker
for a Reason
CATEGORIES
market analysis
A collection of positive and negative news that affects the foreign exchange market
Wonderful introduction:
Let your sorrows be full of worries, and you can't sleep, and you can't sleep. The full moon hangs high, scattered all over the ground. I think that the bright moon will be ruthless, and the wind and frost will fade away for thousands of years, and the passion will fade away easily. If there is love, it should have grown old with the wind. Knowing that the moon is ruthless, why do you repeatedly express your love to the bright moon?
Hello everyone, today XM Foreign Exchange will bring you "【XM Foreign Exchange Market www.xmniubi.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:
In the foreign exchange market, various news always affects the trend of the currency, and investors need to pay close attention to the latest developments in order to seize investment opportunities. On August 29, the foreign exchange market was affected by the interweaving of various factors. The following is a summary of the positive and negative news that affected the foreign exchange market on that day.
1. Economic data level
(I) US economic data
In the United States, although some data show economic resilience, there are also some hidden worries. If the U.S. initial jobless claims figures last week are underperforming, it will suggest that the labor market has loosened, posing a potential negative for the US dollar. If the US GDP correction value in the second quarter is lower than expected, it may weaken market confidence in strong US economic growth and suppress the US dollar trend. However, if the data is better than expected, it will provide support for the US dollar and strengthen market optimism about the outlook for the US economy.
(II) Economic data of other countries
Australia's inflation indicator cooled in July, and this news implies that the country's price pressure began to ease in the current quarter, supporting the RBA's decision to keep interest rates unchanged. For the Australian dollar, poor inflation data limits its upside potential and becomes a negative factor for the Australian dollar. Because cooling inflation may reduce market expectations for the RBA's further rate hikes, reducing the attractiveness of the Australian dollar.
2. Related central bank policies
(I) Fed policy expectations
Feder Chairman Powell's speech at the Jackson Hall Global Central Bank Annual Meeting hinted that interest rate cuts may be possible in the www.xmniubi.coming months, which greatly affected market expectations. The rising market expectations for the Fed's interest rate cut have made the attractiveness of US dollar assets less. From the theory of interest rate parityFrom a perspective, under the expectation of interest rate cuts, the interest rate advantage of the US dollar weakens, and investors will be more inclined to seek other monetary assets with higher interest rates or appreciation potential, thus creating negative news for the US dollar. On the contrary, for other currencies, such as the euro, pound, etc., the spread advantage over the US dollar may increase, becoming a potential positive factor for these currencies.
(II) Other central trends
In terms of the RBA, in view of changes in Australia's July inflation data, the market expects it to maintain interest rates unchanged to ensure inflation expectations are controlled. This expectation stabilized the Australian dollar to a certain extent, avoiding large fluctuations caused by market concerns about uncertainty in monetary policy. But from another perspective, while maintaining interest rates unchanged and inflation cools down, the Australian dollar lacks upward drivers caused by monetary policy adjustments.
For the ECB, Rabobank said that the euro has limited room for a recent uptrend against the US dollar, as a sharp strengthening of the euro may trigger expectations of the ECB to accelerate interest rate cuts. This means that when trading the euro, the market will take into account the potential risks of the European Central Bank's policy adjustments, limiting the upward space of the euro, posing a certain negative for the euro.
3. Geopolitical and market sentiment factors
(I) Geopolitical situation
The international geopolitical situation continues to be www.xmniubi.complex and changeable. Although no major geopolitical incidents directly impact the foreign exchange market on August 29, the potential risks of regional tensions always exist. For example, if new unstable factors appear in the situation in the Middle East, it may cause a sharp rise in risk aversion in the market. Under the dominant risk aversion sentiment, funds usually flow to traditional safe-haven currencies, such as the Japanese yen, Swiss francs, etc., which promotes the appreciation of these currencies, and suppresses risky currencies such as the Australian dollar, New Zealand dollar, etc.
(II) Market sentiment and capital flow
Judging from the capital flow data, the capital flows of different currencies have differentiated. The US dollar index hit its biggest gain since June 3 on August 29, and finally closed up 0.50% to 101.06. Dutch International Bank analyst Francisco? Pesolle said that as the impact of Powell Jackson Hall's speech faded and risk sentiment weakened, the dollar may have room for a slight rebound. This shows that changes in market sentiment and the process of digesting previous news have caused funds to flow to the US dollar in a short period of time, which is a good thing for the US dollar. Other currencies, such as the Australian dollar, surged and fell against the US dollar, and finally closed down 0.1% to 0.6784, showing that funds are cautious about the Australian dollar, and the Australian dollar faces certain downward pressure.
Total view, the news in the foreign exchange market on August 29 was www.xmniubi.complex, with long and short factors intertwined. When formulating trading strategies, investors need to www.xmniubi.comprehensively consider economic data, central bank policies, geopolitics and other factors, pay close attention to market trends, and adjust their investment portfolios in a timely manner to cope with the high volatility and uncertainty of the foreign exchange market.
The above content is about "[XM Foreign Exchange Market Review]: A collection of positive and negative news that affects the foreign exchange marketThe entire content of " is carefully www.xmniubi.compiled and edited by the editor of XM Forex. I hope it will be helpful to your transactions! Thank you for your support!
In fact, responsibility is not helpless, not boring, it is as gorgeous as a rainbow. It is this colorful responsibility that has created a better life today. I will work hard to organize the article.
Disclaimers: XM Group only provides execution services and access permissions for online trading platforms, and allows individuals to view and/or use the website or the content provided on the website, but has no intention of making any changes or extensions, nor will it change or extend its services and access permissions. All access and usage permissions will be subject to the following terms and conditions: (i) Terms and conditions; (ii) Risk warning; And (iii) a complete disclaimer. Please note that all information provided on the website is for general informational purposes only. In addition, the content of all XM online trading platforms does not constitute, and cannot be used for any unauthorized financial market trading invitations and/or invitations. Financial market transactions pose significant risks to your investment capital.
All materials published on online trading platforms are only intended for educational/informational purposes and do not include or should be considered for financial, investment tax, or trading related consulting and advice, or transaction price records, or any financial product or non invitation related trading offers or invitations.
All content provided by XM and third-party suppliers on this website, including opinions, news, research, analysis, prices, other information, and third-party website links, remains unchanged and is provided as general market commentary rather than investment advice. All materials published on online trading platforms are only for educational/informational purposes and do not include or should be considered as applicable to financial, investment tax, or trading related advice and recommendations, or transaction price records, or any financial product or non invitation related financial offers or invitations. Please ensure that you have read and fully understood the information on XM's non independent investment research tips and risk warnings. For more details, please click here