Market Highlight 10.06.2025

   According to data released by the Chinese government on Monday, exports from China to the United States plunged 35% year-on-year in May - the steepest decline since February 2020, when pandemic-induced lockdowns disrupted outbound shipments. The sharp contraction underscores the limited effectiveness of the recent trade truce between the world’s two largest economies in halting the deterioration in bilateral trade last month, reflecting the significant impact of President D. Trump’s tariff policy since taking office. Nonetheless, China’s overall exports in May rose 4,8% compared to a year earlier, slowing from April’s 8,1% growth, as outbound shipments to other regions such as Southeast Asia and the European Union continued to increase.
The USD weakened against all major currencies on Monday, as optimism following last Friday’s stronger-than-expected U.S jobs report gave way to caution ahead of high-stakes trade talks between the U.S and China scheduled to begin that day. Delegations from both nations are meeting in London to resolve remaining disputes surrounding the preliminary agreement reached last month in Geneva - a deal that had temporarily eased tensions between the two economic superpowers. The negotiations come at a critical juncture: China is grappling with persistent deflationary pressures, while trade-related uncertainty continues to weigh on business and consumer sentiment in the U.S, prompting markets to reassess the dollar’s safe-haven appeal.
  Domestically, the USD/VND interbank exchange rate held steady near 26.050 on Monday, as market participants remained focused on developments from the ongoing third round of Vietnam - U.S trade negotiations. The exchange rate is expected to edge slightly higher today, trading within the 26.050 - 26.150 range.

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