Market Highlight 07.11.2025

The Bank of England (BoE) announced on Thursday evening that it would keep its benchmark interest rate unchanged at 4%, marking a slowdown - but not necessarily the end - of its monetary easing cycle, as inflation remains elevated alongside a weakening economy and labor market. However, in contrast to the European Central Bank (ECB) and Sweden’s Riksbank, the BoE still signaled the possibility of further rate cuts in the final months of 2025.

The USD fell against the euro for a second consecutive session on Thursday, as data showed further weakness in the U.S labor market, fueling expectations of another Federal Reserve rate cut in December. U.S companies eliminated more than 150.000 jobs in October, marking the largest monthly decline in over two decades, as several industries adopted AI-driven transformations and stepped up cost-cutting measures. In the absence of official reports due to the longest U.S Government shutdown on record, private-sector data have drawn increasing market attention. The dollar’s weakness followed a sharp rally last week, after the FED tempered expectations of further rate cuts this year, citing limited economic data, persistent inflation, and internal divisions among policymakers. Markets now price in roughly a 70% probability of a 25-basis-point cut in December, up from about 60% earlier this week, though still well below the 98% odds seen at the end of October.

Domestically, the interbank USD/VND exchange rate edged down by about VND 10 yesterday, closing at 26.315. The market is expected to trade steadily within the 26.300 - 26.330 range throughout today’s session.

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