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Hello everyone, today XM Forex will bring you "[XM Group]: A collection of good and bad news affecting the foreign exchange market". Hope this helps you! The original content is as follows:
The minutes of the Federal Reserve meeting showed officials’ willingness to cut interest rates: In the early morning of October 9, the minutes of the September meeting released by the Federal Reserve showed that Federal Reserve officials showed their willingness to further cut interest rates this year at last month’s policy meeting. Most participants believed that further easing of policy may be appropriate for the rest of the year. This signal will have a certain boosting effect on non-US currencies and may cause the US dollar to weaken, thus benefiting other currencies.
China’s foreign exchange reserves have increased: Data released by the State Administration of Foreign Exchange show that as of the end of September 2025, China’s foreign exchange reserves were US$3,338.7 billion, an increase of US$16.5 billion, or 0.5%, from the end of August. The increase in foreign exchange reserves indicates that the stability of China's foreign exchange market has increased, providing certain support for the RMB exchange rate.
Foreign capital inflows into the Chinese stock market hit a new monthly high: A Morgan Stanley report showed that foreign capital lrisu.cn inflows into the Chinese stock market in September were US$4.6 billion, a new monthly high since November 2024, reflecting the return of global investors' confidence in Chinese assets, which will help increase the attractiveness of the RMB and have a positive impact on the RMB exchange rate.
The U.S. government shutdown entered its second week: The U.S. federal government shutdown entered its second week on the 8th, and the Senate still failed to pass a temporary appropriation bill. The U.S. government shutdown may have a negative impact on the U.S. economy, thereby weighing on the dollar. In addition, the government shutdown may also affect the release of relevant U.S. economic data, increase market uncertainty, and be detrimental to the trend of the U.S. dollar.
The French political deadlock drags down the euro: The French National Assembly forced the previous two prime ministers to resign due to budget planning issues, and the government struggled to meet the October 13 budget submission deadline.To lrisu.cnplete the task before the deadline, the spread between the French 10-year government bond yield and the German bond of the same maturity widened to the highest level since early January. Affected by intensifying political uncertainty, France's manufacturing output and new orders both fell sharply in September, and service industry activities further fell into contraction. The euro was dragged down and the exchange rate fell.
The European Central Bank expects the inflation rate to rise in 2025: The European Central Bank expects the inflation rate to be 2.3% in 2025, lrisu.cnpared with the previous forecast of 2.1%. Higher inflation expectations may limit the European Central Bank's room for monetary policy easing, and may also have a certain negative impact on the euro area economy, which is not conducive to the euro exchange rate.
The U.S. dollar index rose: In late trading in New York, the U.S. dollar index rose 0.27% to 98.86, with most non-U.S. currencies falling. The euro fell 0.24% to 1.1629 against the US dollar, the pound fell 0.15% to 1.3404 against the US dollar, and the Australian dollar fell 0.11% to 0.6579 against the US dollar. The rise in the U.S. dollar index puts non-U.S. currencies under greater depreciation pressure.
Global economic uncertainty increases: The Russia-Iran lrisu.cnprehensive Strategic Partnership Treaty officially lrisu.cnes into effect. This event may have an impact on the global political and economic landscape and increase market uncertainty. In addition, events such as Goldman Sachs' lowering of oil price expectations also reflect market volatility and uncertainty. These factors may lead to an increase in investor risk aversion and the flow of funds to safe assets, thus putting pressure on some risky currencies.
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