Market Highlight 28.03.2025
The U.S Department of Commerce revised fourth-quarter GDP growth upward to 2,4%, from the previously estimated 2,3%, following a 3,1% expansion in Q3. Most economists now expect GDP growth to slow to below 2% in the first quarter of 2025. The Commerce Department is scheduled to release its first official estimate for Q1 GDP growth on April 30. This key data point is expected to heavily influence the timing of the Federal Reserve’s next rate cut to support the economy, likely in the third quarter. For now, markets remain focused on the U.S government’s upcoming tariff announcement set for April 2. Earlier this week, signs emerged that President Donald Trump may take a more flexible approach in setting new tariff levels, easing investor concerns and helping to fuel the dollar’s recent rebound. The specific details of the tariffs will not be revealed until next week. However, on Wednesday, the administration announced a 25% import tariff on cars and light trucks, raising fresh concerns that trade tensions may escalate further. In 2024, the U.S imported $474 billion worth of vehicles, including $220 billion in passenger cars. Mexico, Japan, South Korea, Canada, and Germany were the largest suppliers. The USD Index declined by 0,37% on Thursday, reflecting renewed concerns over escalating trade tensions and the risk of slowing growth in the world’s largest economy in Q1 2025.
In Vietnam, the USD/VND exchange rate traded within a narrow band below 25.600 during Thursday’s session, pressured by the global dollar pullback. The State Bank of Vietnam lowered its daily reference rate to 24.846, setting the effective ceiling rate at 26.088 - up 2,1% year-to-date. The interbank exchange rate is forecast to extend its downward momentum today, moving toward the 25.550 level, as markets await March PCE inflation data from the U.S, which could shape the next directional move for the USD.
Asia Commercial Joint Stock Bank assumes no responsibility or liability for any purpose of reference or using the information provided by this newsletter.
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