Market Highlight 10.12.2025

The USD strengthened on Tuesday evening (+0,15%) after better-than-expected labor-market data indicated that the U.S job market has not fully weakened ahead of the Federal Reserve’s anticipated rate cut on Thursday morning. Policymakers at the FED are likely to remain attentive to U.S inflation risks, thereby tempering the pace of subsequent rate reductions. According to the Job Openings and Labor Turnover Survey (JOLTS) released on Tuesday, the number of available positions - a key gauge of labor demand - rose by 12.000 to 7,670 million as of the final day of October. Following the release, the USD climbed to its highest level in 2 weeks against the JPY, reaching nearly 157.

Kevin Hassett, Director of the National Economic Council, said he would rely on his own judgment and resist political pressure when deciding whether to cut interest rates if appointed as the next Chair of the Federal Reserve. However, Mr. Hassett noted that there remains “considerable room” for rate cuts in the coming months, aligning with President Donald Trump’s repeated calls for lower borrowing costs. President Trump stated on Wednesday that he wants the next FED Chair to commit to further rate reductions. Nonetheless, the Federal Reserve Board of Governors - including the Chair - will make the final decision on whether to cut interest rates.

The interbank USD/VND exchange rate edged up by roughly VND 10 on Wednesday, closing the day at 26.375. During the session, the State Bank of Vietnam announced its second round of 14-day foreign-exchange swap operations to provide additional VND liquidity to banks in need. The exchange rate is expected to continue trading steadily within the 26.350 - 26.380 range today, while markets await policy signals from the Federal Reserve.

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