Market Highlight 12.03.2025

The February U.S Consumer Inflation report will be closely monitored by the market tonight. Forecasts suggest that CPI may remain elevated last month after a sharp increase in January, indicating that the Federal Reserve still faces significant challenges in its battle to control inflation. However, a higher-than-expected CPI reading could fuel concerns about stagflation, while a weaker-than-expected figure could reinforce fears of an economic recession. Food and housing costs are expected to be key drivers of consumer prices, but household furniture, apparel, and electronics will also face upward price pressures due to the additional 10% tariffs on Chinese goods imposed by the U.S government since early February.

The USD Index fell nearly 0,5% yesterday amid escalating trade tensions between the U.S and major economies, adding pressure on the world’s largest economy’s growth outlook. New import tariffs on steel and aluminum entering the U.S are set to take effect tonight. However, for Canada, President D. Trump announced a doubling of the planned tariff rate on all imported steel and aluminum products to 50%, following Ontario’s decision to impose a 25% tariff on electricity exports to the U.S. Meanwhile, the most notable report released last night indicated a slight rebound in U.S job openings for January. The U.S labor market is showing signs of slowing amid policy uncertainty under the new administration.

The USD/VND interbank exchange rate fell by 50 VND, dropping below 25.500 yesterday, weighed down by the U.S dollar’s weakness in global markets. The 25.450 level remains a key support zone for the market at this stage, with expectations of a recovery signal emerging later today.

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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