Market Highlight 03.08.2026

The U.S July nonfarm payrolls report will be the main focus this week as the market assesses the interest-rate outlook for the coming months. The Federal Reserve kept rates unchanged at its recent meeting, while Chair Kevin Warsh provided little guidance on the next direction of interest-rate policy. This makes upcoming economic data even more important. Recent U.S employment data have been relatively weak, meaning further signs of labor market softness could reduce expectations of a FED rate hike. Ahead of the key report on Friday, Tuesday’s JOLTS job openings data, Wednesday’s ADP private-sector payrolls report for July, and Thursday’s initial jobless claims figures will provide additional signals on the state of the U.S labor market.

The USD posted its fourth consecutive daily decline amid reports of coordination between the U.S and Japan to intervene in the foreign exchange market and stabilize the JPY. The USD Index fell by 1,6% last week, marking its largest weekly decline since late January. The market views the recent interventions as helping authorities gain more time before Japan’s economic fundamentals improve. Last week, the Bank of Japan kept its policy rate unchanged at 1% and signaled further rate hikes as early as September, which would bring the policy rate to an expected 1,25% by year-end. Japan’s relatively slow pace of rate increases is seen as one of the factors that pushed the yen to its weakest level in 40 years, recently below 163 JPY per USD.

Interbank USD/VND rebounded to 26.300 last Friday, although it had fallen to as low as 26.260 during the day. The effective daily ceiling rose by a further VND 18 to 26.604.

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