Market Highlight 27.08.2026

The U.S Personal Consumption Expenditures (PCE) price index remained above the FED’s target, rising by 0,2% in July after declining by 0,1% in June. On a year-over-year basis, headline PCE inflation increased by 3,7%, while core PCE inflation rose by 3,3%. Detailed data showed that spending on essential goods fell by 0,8%, while spending on services increased by 0,3%, mainly driven by stronger spending on transportation, food services, and accommodation. The updated inflation report released on Wednesday night came ahead of FED Chair Kevin Warsh’s first speech at the annual Central Banking symposium in Jackson Hole, Wyoming. U.S inflation remains above the FED’s 2% target, while sharp volatility in Treasury yields has increased market demand for clearer guidance on the Central Bank’s monetary policy outlook. Other U.S data released last night showed that Q2 economic growth was revised at +1,5%, unchanged from the initial estimate. The U.S Department of Commerce also reported that personal income rose by 0,4% in July, exceeding the 0,2% forecast, while consumer spending, which accounts for more than two-thirds of economic activity, was unchanged after increasing by 0,3% in June.

The USD strengthened on Wednesday after a series of U.S economic data, including the inflation report, slightly increased expectations of a Federal Reserve rate hike next month, with the probability now at around 40%. Meanwhile, expectations that the European Central Bank, the Reserve Bank of Australia, and the Bank of Japan will raise interest rates further at their upcoming September meetings are also increasing sharply, as global energy prices remain elevated amid continued tensions in Iran. Interbank USD/VND edged lower yesterday but remained above 26.100. The effective daily ceiling on Wednesday was lowered by VND 4 to 26.891.

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