Daily global foreign exchange market news summary (2025-08-05)
US Dollar:
1. Trump: Will select an outstanding successor for the US Labor Department.
2. Federal Reserve's Daly: The timing for interest rate cuts is nearing, and the number of cuts this year is more likely to exceed two.
3. Former New York Fed President Dudley: Internal divisions within the Fed are being greatly exaggerated.
4. Goldman Sachs: Expects the Fed to start three consecutive 25 basis point cuts from September; if the unemployment rate rises further, a 50 basis point cut may occur.
Major Non-USD Currencies:
1. The EU will suspend its trade countermeasures against the US for six months. The EU awaits Trump to take action on auto tariffs and exemptions this week.
2. The Swiss government plans to continue talks with the US after August 7, determined to present more attractive proposals to the US.
3. Bank of Japan meeting minutes: Many members noted that inflation is slightly above expectations, but must carefully examine the economic situation due to downside risks from US tariff policies on economic growth.
Others:
1. Hong Kong Monetary Authority bought HKD 6.429 billion in the market due to the HKD exchange rate hitting the weak side conversion guarantee.
2. Bank of Korea: Due to temporary factors, inflation rate is expected to fall significantly in August.
3. Traders: The Reserve Bank of India may sell dollars in the local spot market before the opening to support the rupee.
4. The State Bank of Vietnam requires lending institutions to lower deposit rates to promote a reduction in loan rates.
5. Colombia's central bank raised its 2025 inflation forecast from the previous 4.4% to 4.7%.
6. Argentine President Milei vetoed the pension increase bill passed by Congress.
