Market Highlight 17.02.2025

The USD Index declined by another 0,25% on Friday, bringing its total weekly loss to approximately 1,2%, marking its second consecutive week of decline as trade tensions temporarily eased. Meanwhile, data showed that U.S retail sales fell more sharply than expected in January, increasing market expectations that the Federal Reserve could implement two rate cuts this year, which contributed to pushing the USD to a nine-week low. U.S retail sales in January recorded their steepest drop in two years (-0,9%), surprising economists. The decline was attributed to severe wildfires in Los Angeles and harsh winter weather across several states, which dampened in-store shopping activity. American households continue to grapple with prolonged inflation and high credit interest rates, reducing consumer demand following the peak holiday shopping season.

Last Thursday, President D. Trump directed government agencies to propose reciprocal tariffs between the U.S and other countries to compensate not only for direct tariffs on U.S goods but also for various non-tariff barriers. This announcement followed the U.S decision to impose an additional 10% tariff on Chinese imports and plans to levy a 25% tariff on all imported steel and aluminum next month. This week, market attention will focus on PMI data from major economies, the Federal Reserve’s January policy meeting minutes, and the potential rate cut by the Reserve Bank of Australia.

The USD/VND exchange rate fell by approximately 30 VND on Friday, closing at 25.390 in line with the USD’s broader weakness. The highest rate recorded on February 12 was 25.610. The market is expected to trade steadily around the 25.300 - 25.400 range while awaiting further developments in the ongoing tariff conflict between the U.S and its key trading partners.

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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