Market Highlight 11.11.2024

The USD Index rebounded by nearly 0,6% at the end of last week as markets took time to assess the economic implications of the U.S Presidential Election for the upcoming term. The Republican Party secured control of the Senate and currently holds a lead in the House race, paving the way for the new President to more easily advance policy priorities such as increasing trade tariffs, tightening restrictions on illegal immigration, cutting corporate taxes, and repealing numerous business regulations. Notably, data released on Friday showed U.S consumer confidence rising to its highest level in 7 months in early November. 

This week, market attention will shift to U.S inflation and retail sales data as investors look for signals of potential economic shifts following the election results. U.S inflation in October is forecasted to maintain its previous month’s pace, underscoring the FED’s ongoing challenges in controlling price pressures as the year draws to a close. Several Federal Reserve officials are set to speak on policy following last week’s 0,25% rate cut, with FED Chair J. Powell’s address on Thursday evening expected to draw particular interest.  

The USD/VND exchange rate dropped sharply by nearly 80 VND on Friday, impacted by the FED’s recent 0,25% policy rate reduction. Over the past week, the exchange rate remained mostly steady around the 25.260 - 25.300 range, although it briefly reached 25.410 as the dollar strengthened amid the unpredictable U.S election developments. The USD/VND rate is expected to rise above 25.300 as some USD buying orders are scheduled for execution this morning, before gradually cooling toward the end of the day. The prevailing trend remains towards a gradual reduction in the exchange rate this week.

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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