Market Highlight 24.08.2026

U.S-Canada trade negotiations ended late Friday without an agreement after several weeks of tense discussions. This has thrown relations between the two major economies, which conduct nearly 900 billion USD in annual trade, into uncertainty and increased the risk of escalation into a full-scale trade war, potentially affecting the future of the U.S-Mexico-Canada Agreement. A 50% tariff on 20 billion USD of Canadian goods, equivalent to around 5% of Canada’s exports to the U.S, took effect after midnight on Friday. Canada also announced that it would impose reciprocal tariffs on U.S goods such as steel, dairy products, and household appliances from 8/9. Canada is scheduled to release Q2 GDP data this week, with growth expected to be the strongest since early 2023.

The market is awaiting FED Chair Kevin Warsh’s speech on Friday at the annual Jackson Hole meeting in Wyoming for clearer guidance on how the U.S Central Bank should respond to persistent inflation. Recent data suggest that inflation, although still above the FED’s 2% target, may be starting to cool. Preliminary estimates indicate that the PCE price index could rise by 3,6% YoY in July. This would be the lowest increase in the past 4 months, despite oil prices rising again amid the prolonged war in Iran. Detailed Personal Consumption Expenditures (PCE) price data will be released on Wednesday this week. The USD Index fell by nearly 0,8% last week following the U.S Treasury Department’s measures to stabilize the long-term Treasury market.

Interbank USD/VND traded within a relatively wide 26.050 - 26.215 range last week, while USD buying demand from corporates has started to increase again.

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