Market Highlight 18.12.2024

Retail sales in the United States continued to grow robustly in November, underscoring the sustained strength of the economy’s most critical driver. According to the latest data released by the U.S Department of Commerce last night, retail sales increased by 0,7% in November, following a 0,5% gain in the previous month and exceeding forecasts of a 0,5% rise. Sales at automobile surged by 2,6%, driven by replacement demand following recent major hurricanes, while online sales posted the largest gain of approximately 1,8%.

The USD Index edged higher yesterday after U.S retail sales data surpassed expectations, while the market prepared for interest rate adjustments by the Federal Reserve and other Central Banks later this week. Market consensus remains firm that the FED will almost certainly reduce its policy rate by 0,25% this week. Recent comments from FED members suggest that this rate cut could conclude the first phase of a two-step monetary easing process. The next phase would involve monitoring the market for more definitive signs of improving inflation or a weakening labor market before deciding on additional rate cuts. This week’s meeting is expected to focus heavily on two key questions that may determine the FED’s rate path for next year: the appropriate "neutral" interest rate level and how the policies of newly elected President Donald Trump might influence the FED’s plans.

The USD/VND exchange rate rose by 40 VND yesterday, driven by the upward momentum of the USD in global markets and some USD payment demand during the session. The closing rate remains close to the State Bank of Vietnam’s USD intervention selling price of 25.450. The exchange rate is expected to stay above the 25.400 level today.

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