Market Highlight 19.05.2025

The USD strengthened on Friday (+0,17%) after the latest economic data showed a notable rise in import prices, while consumer sentiment remained subdued amid persistent concerns over elevated tariffs, positioning USD Index for its fourth consecutive weekly gain. Specifically, the U.S Department of Labor reported that import prices rose by 0,1% in April, reversing a 0,4% decline in March, largely due to rising costs of capital goods despite lower energy prices. Meanwhile, the University of Michigan’s Consumer Sentiment Survey showed that the sentiment index dropped to 50,8 in May, well below the projected level of 53,4. The dollar began the previous week with a strong rally - gaining over 1% on Monday - after the U.S and China jointly announced a 90-day pause on most elevated tariffs imposed since early April, easing global recession fears. However, the USD subsequently weakened throughout the week, partially due to a series of underwhelming U.S economic indicators. The USD Index remains nearly 3% lower than its level on April 2, when President Donald Trump unveiled sweeping retaliatory tariffs against a broad set of trading partners.

Speaking after concluding a four-day tour of the Gulf region, President Trump stated that the U.S may announce additional tariffs on numerous trading partners within the next two to three weeks. During the current suspension period, the U.S has focused on negotiating with around 20 key partners - such as India, Japan, and South Korea - while roughly 150 other countries are reportedly seeking trade talks with Washington.

The USD/VND interbank exchange rate edged lower on Friday, closing at 25.920, marking a weekly decline of approximately 45 VND. This week, market attention will turn to potential new developments in the U.S - Vietnam trade negotiations, especially after the U.S signaled over the weekend that the time for reaching agreements with various countries may be narrowing.

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