Market Highlight 18.11.2024

The USD posted its largest weekly gain in over a month on Friday as markets reassessed the Federal Reserve’s future rate-cut trajectory, factoring in potential influences from President-elect Donald Trump’s policies on FED decisions. The USD Index traded near its one-year high of 107,07 against a basket of major currencies, reflecting a weekly increase of approximately 1,65%. Data from the U.S Commerce Department on Friday revealed that October retail sales exceeded expectations, though consumer spending momentum appears to have slowed at the start of Q4. Boston FED President Susan Collins suggested in weekend remarks that the FED might pause rate cuts following the December 17-18 meeting, depending on forthcoming labor market and inflation data. Expectations for a December rate cut have dropped to around 60%, down from nearly 80% a day earlier.

This week is expected to be relatively quiet regarding U.S economic data releases. The most notable report will arrive on Friday with the PMI data for the manufacturing and services sectors, offering early insights into how U.S businesses are responding to potential trade tariff policies that President Trump’s administration might propose. This will serve as a key indicator for market sentiment over the next 4 years.

The USD/VND exchange rate moved within a narrow range during Friday’s trading session, closing at 25.390, reflecting a weekly increase of over 100 VND. The rate is projected to trade within the 25.300 - 25.400 range this week as markets await signs of cooling in the USD’s strength on the global stage.

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