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Hello everyone, today XM Forex will bring you "[XM Official Website]: A collection of good and bad news affecting the foreign exchange market". Hope this helps you! The original content is as follows:
On November 14, 2025, the foreign exchange market ushered in an intense game between long and short factors. The U.S. dollar index fell below the key mark, the trends of non-U.S. currencies diverged, and the Federal Reserve’s policy statements, economic data from various countries, and international policy adjustments became the core variables affecting the market. The following is a collection of good and bad news at the core of the day's trading:
The U.S. dollar index fell below the 99 mark. On November 14, the U.S. dollar index fell below the 99 mark for the first time since October 30, falling 0.47% on the day. U.S. stocks weakened simultaneously, with the Nasdaq index falling 2.00% during the day and the S&P 500 index falling 1.00%. The selling wave of technology stocks and the spread of risk aversion further weakened the appeal of the U.S. dollar.
The aftereffects of the government shutdown still exist. Although the 43-day shutdown of the U.S. government has ended, the core differences between the two parties on issues such as medical insurance have not been resolved, and it may still fall into another shutdown on January 30. Moreover, the shutdown resulted in the permanent loss of a large amount of key economic data, which not only put the Federal Reserve's decision-making into trouble, but also deprived the market of an important basis for judging the fundamentals of the U.S. economy, exacerbating the risk of dollar fluctuations.
Federal Reserve officials collectively released hawkish signals. Cleveland Fed President Beth Hammack made it clear that interest rates should be kept unchanged to continue lowering inflation. St. Louis Fed President Alberto Musalem also emphasized that inflation is still above the 2% target and that subsequent interest rate cuts need to be cautious. The current market probability of betting on an interest rate cut in December has dropped below 50%. Expectations for interest rate hikes have cooled down and the stance of maintaining high interest rates has provided some support for the US dollar.
The euro has received potential policy support. European financial stability officials are discussing a plan to integrate the U.S. dollar reserves of non-U.S. countries and build an alternative to the Fed's liquidity support mechanism. This move is aimed at reducing dependence on the United States. If implemented, it will increase the weight of the euro in international settlements and benefit the euro's long-term trend.
The Australian dollar has strengthened thanks to multiple factors. On November 14, the exchange rate of the Australian dollar against the offshore RMB was 4.6361, a slight increase from the previous day. During the previous European session on the 13th, rising metal prices and improving labor market data pushed the Australian dollar up 0.49% against the US dollar. On that day, the exchange rates of the Australian dollar against currencies such as the Hungarian forint and the Peruvian sol showed an upward trend. The recovery of the www.uniff.orgmodity market provided support for the Australian dollar.
Some niche currencies benefit from exchange rate linkage. The UAE dirham was active, with its exchange rates rising against Sri Lankan rupees, Serbian dinars, Japanese yen and other currencies, with an intraday increase of 0.3944 against the Japanese yen; the Angolan kwanza's exchange rate against the euro and the U.S. dollar increased slightly, and the Burundian franc's exchange rate against the U.S. dollar also rose slightly. The release of regional currency linkage effects is good.
The pound was dragged down by economic weakness. Data from the British Office for National Statistics showed that the country's economy grew only slightly by 0.1% in the third quarter, and growth fell short of expectations on the eve of the autumn budget. The almost stagnant economy has put the pound under continued pressure amid exchange rate fluctuations. On the 14th, the exchange rates of currencies such as the Azerbaijani manat and the Aruban florin all fell against the pound, reflecting the market's lack of confidence in the pound.
The plunge in cryptocurrencies triggered safe-haven spillovers. On November 14, Bitcoin fell below US$99,000, down 2.71% on the day, and Ethereum fell below US$3,200, with the intraday drop expanding to 6.34%. Although the sharp correction in the cryptocurrency market does not directly affect traditional foreign exchange, it may trigger the transfer of some risky funds and indirectly disrupt the liquidity of the foreign exchange market.
International trade dynamics bring variables. The United States and Argentina have reached a trade agreement framework, and both sides plan to open up key www.uniff.orgmodity markets. The United States also plans to launch a tariff exemption policy to stabilize food prices. This move may improve the U.S. trade balance and be an indirect benefit to the U.S. dollar. Thailand plans to resume trade negotiations with the United States, which may affect the exchange rate linkage between Southeast Asian currencies and the U.S. dollar.
Overall, the negative factors for the US dollar dominated the foreign exchange market that day, and the long-short differentiation of non-US currencies was obvious. Traders need to focus on the Federal Reserve's subsequent policy guidance and additional economic data from the United States, while being wary of short-term fluctuations caused by geopolitics and cross-border trade dynamics.
The above content is all about "[XM official website]: Collection of good and bad news affecting the foreign exchange market". It is carefully www.uniff.orgpiled and edited by the XM foreign exchange editor. I hope it will be helpful to your trading! Thanks for the support!
Due to the author’s limited ability, time constraints and other reasons,Some contents in this article still require further discussion and in-depth research. Therefore, in the future, the author will conduct extended research and discussion on the following issues: