Market Highlight 15.08.2024

    Inflation in the U.S. continued to cool in July, reinforcing the likelihood that the Federal Reserve will begin cutting interest rates in September. Data released last night by the U.S Department of Labor showed that the Consumer Price Index (CPI) rose 2,9% year-over-year, the lowest rate since 2021 and slightly below economists' previous forecast of 3%. Core inflation, which excludes food and energy prices, stood at 3,2%, also the lowest level in 3 years. While housing costs rose faster than in June, declines in prices for items such as used cars and medical services partially offset this increase. Financial markets saw little significant movement following the release of the U.S CPI data, indicating that attention is now focused on the health of the U.S labor market. The USD Index dipped slightly by the end of the day, while major stock indices like the Dow Jones gained 0,61% and the S&P 500 rose 0,38%. The market currently estimates a more than 50% chance that the FED will cut interest rates by 0,5% in September, with the total reduction potentially reaching 1% for the remainder of 2024.
    In the first 7 months of the year, Vietnam's export turnover reached $266,9 billion, up 15,7% compared to the same period last year. On the other hand, import turnover for the same period was $212,9 billion, an increase of 18,5% year-over-year. The latest strategic report from the Ministry of Industry and Trade projects that by 2025, the entire sector aims to increase the nation's export turnover by approximately 6%, with the trade balance maintaining a surplus of around $15 billion.
    The USD/VND interbank exchange rate fell by more than 80 dongs yesterday, influenced by the weakening of the USD in global markets following U.S. inflation data. The exchange rate is expected to test the psychological level of 25.000 today, with the downward trend likely to be supported leading up to the FED's policy meeting on September 18.

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

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