Market Highlight 10.06.2026

The Bank of Canada is widely expected to keep its policy rate unchanged on Wednesday night, after leaving it at 2,25% since October 2025, as policymakers confront an economy on the edge of recession and the risk of higher inflation driven by rising energy costs. Canada’s economy has contracted in 2 consecutive quarters and in three of the past four quarters. However, many argue that it is still too early to use the term recession, as the downturn has lacked both depth and broad-based weakness. Inflation accelerated to 2,8% in April, still below the peak above 3% that the Bank of Canada had anticipated. The trade sector, heavily affected by high U.S tariffs, has cut 64.000 jobs since the beginning of 2026, prompting earlier warnings from the Central Bank about labor-market weakness. The market is currently pricing in at least 2 rate hikes by the BoC before the end of 2026.

The USD edged lower on Tuesday as doubts grew over the durability of the Middle East ceasefire and attention turned to the U.S May inflation data. Early this morning, the U.S military launched retaliatory strikes following an attack on a helicopter in the Strait of Hormuz, while tensions between Israel and Lebanon continued to escalate. This has made the prospect of a peace agreement in the Middle East even more fragile. The U.S economy is seen as relatively less exposed to energy shocks than many other economies. This has supported safe-haven demand for the USD throughout the Iran war, while putting pressure on the EUR and JPY, which have fallen 1,62% and 2,4%, respectively, since the conflict began in late February.

Domestically, interbank USD/VND edged back down to around 26.330 by the end of yesterday’s session, with the effective daily ceiling set at 26.408.

Please contact the nearest Asia Commercial Joint Stock Bank's branch to receive information and consultancy if you are in need of making any foreign exchange and derivatives transactions.

Asia Commercial Joint Stock Bank assumes no responsibility or liability for any purpose of reference or using the information provided by this newsletter.

Directly contact us to receive market news and consultancy on foreign exchange products and derivatives:

- Financial Markets Division – Email: ktttc@acb.com.vn ; or

- Mr. Khanh Hoang (Financial Markets Senior Analyst) – Email: hoangnk@acb.com.vn