Market Highlight 18.05.2026

The U.S and China agreed to establish Trade and Investment Councils at last week’s summit to address shared concerns over market access and agricultural products. Although it remains unclear how far these groups will be able to resolve the long-standing trade disputes between Washington and Beijing, their immediate objective is to reduce tariffs on at least 30 billion USD worth of goods. Even so, the two sides appeared to make only limited progress on trade issues during the high-level meeting in Beijing last week. The one-year trade truce signed in October 2025 is due to expire at the end of this year, with no fresh signal yet of an extension.

The USD rose strongly (+0,42%) for a fifth consecutive session on Friday and recorded its largest weekly gain in two months, as market expectations for the FED’s policy path shifted toward the possibility of rate hikes. U.S Treasury yields continued to rise, with the 10-year yield reaching 4,599%, the highest level in a year. A series of economic data released last week showed mounting price pressures as energy supplies through the Strait of Hormuz remained largely disrupted by the war in Iran. WTI crude rose 4,16% to 105,38 USD/barrel, while Brent climbed 3,42% on the day to 109,34 USD/barrel, after comments from President D. Trump and Iran’s Foreign Minister reduced hopes for an agreement to end the attacks and vessel seizures around the Strait of Hormuz. Several FED officials also said last week that containing price pressures remains the top priority, while not ruling out the need for higher interest rates if inflation continues to rise.

Domestically, interbank USD/VND held around 26.350 - 26.360 last Friday and recorded an increase of around VND 40 over the course of the week.

Please contact the nearest Asia Commercial Joint Stock Bank's branch to receive information and consultancy if you are in need of making any foreign exchange and derivatives transactions.

Asia Commercial Joint Stock Bank assumes no responsibility or liability for any purpose of reference or using the information provided by this newsletter.

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