Market Highlight 20.06.2024

The USD Index slightly declined for the third consecutive day as the U.S. market was closed yesterday due to the impact of weaker-than-expected retail sales reports. This continues to reinforce signs of a slowdown in the U.S. economy and increases the likelihood that the FED will cut interest rates sooner. Following consumption data, PMI data on manufacturing and services activities in the U.S. and Europe will be closely monitored by the market later this week. If indicators show that the world's largest economy continues to weaken further in the coming months, expectations for the FED to implement two interest rate cuts by the end of this year (in September and December) will continue to grow.

Vietnam's trade balance returned to a surplus of approximately 327 Million USD in the first half of June, after recording a deficit of 456 Million USD in May. Specifically, export value in the first half of June reached 15,73 Billion USD (down 10,4% compared to the second half of May), and imports reached 15,4 Billion USD (up slightly by 1,5% compared to the second half of May). Thus, from the beginning of the year to June 15th 2024, the country's exports reached 172,78 Billion USD (up 15,2% compared to the same period last year), and imports reached 163,71 Billion USD (up 17,2%). The total import and export turnover reached 336,48 Billion USD (up 16,2%). The cumulative trade surplus increased to 9,07 Billion USD (compared to a surplus of 12,84 Billion USD in the same six-month period in 2023). According to a representative of the Ministry of Industry and Trade, the total import and export turnover of goods for the first six months of 2024 could reach about USD 370 billion, up 16% compared to the same period last year.

The USD/VND interbank exchange rate continued to be traded around rate of 25.450 yesterday which maintaining a narrow gap from the effective ceiling rate of 25.470. The exchange rate on the free market remained stable around rate of 25.800 yesterday.

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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