Market Highlight 21.05.2024

The USD appreciated against major currencies yesterday, gaining 0,1% against the EUR, 0,4% against the AUD, and 0,4% against the JPY, as the market awaits the release of the May FOMC meeting minutes to glean new signals regarding interest rate policy. Despite signs that inflation in the U.S is cooling, recent comments from FED members reflect a cautious stance. Speaking earlier this week, Atlanta FED President Raphael Bostic and FED Vice Chair Philip Jefferson both indicated it is too early to determine if the slower pace of price increases in April will be sustained. Meanwhile, Cleveland FED President Loretta Mester acknowledged that the scenario involving three rate cuts this year is no longer applicable. Last week’s data showed U.S consumer prices rose less than expected in April, heightening market expectations that the FED might implement around 1-2 rate cuts (0,25% each) starting as early as September this year.

The latest data from the General Department of Vietnam Customs shows the national trade balance recorded an estimated trade deficit of about 2,63 Billion USD in the first half of May. Exports reached 14,6 Billion USD (down 8% from the second half of April), while imports hit 12,3 Billion USD, up 26%. From the beginning of the year to May 15, total exports amounted to 138,6 Billion USD (up 16% year-on-year), while imports totaled 132,2 Billion USD, up 18%. By a trade deficit recorded in the first half of May, Vietnam’s trade surplus is estimated to have decreased to about 6,4 Billion USD, slightly lower than the 6,9 Billion USD surplus recorded in the same period last year. The USD/VND exchange rate remained stable around 25.450 yesterday. Reportedly, the State Bank of Vietnam continued to supply the market with approximately 300 Million USD, raising the cumulative intervention amount during this period to nearly 2 Billion USD. The central bank’s foreign currency supply plays a crucial role in stabilizing market sentiment amid ongoing high demand pressures. 

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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

- Ms. Hong Anh (Financial Markets Researcher) – Email: anhkh@acb.com.vn