Market Newsletter on 05.04.2023

FORECAST FOR THE DAY
RATE USD/VND

USD/VND RATE TRENDING

Market sentiment:

Domestic: On April 4, the Asian Development Bank (ADB) forecast that Vietnam's economic growth in 2023 will decrease slightly to 6.5% before increasing again to 6.8%. in 2024. Public investment will be a key driver of economic recovery and growth in 2023 and 2024, helping to boost the construction industry and other related economic activities. However, foreign investment is still affected by the global economic downturn. Newly registered, adjusted, and contributed capital to purchase shares and capital contributions from foreign investors only reached nearly US$5.45 billion, down 38.8% over the same period in 2022.

World: World gold prices closed above $2000/ounce for the first time since March 2022 on worries that the world's largest economy could be heading into a recession, while boosting the likelihood of a recession. The Federal Reserve will soon end its rate hike cycle. This opens up the possibility that this precious metal could challenge the all-time high of $2075.47 per ounce set in August 2020. The role of gold is enhanced when the dollar is on the way of weakening again along with concerns about the health of the banking system in the US - Europe and recent geopolitical tensions.

The dollar traded at a 2-month low yesterday as continued weakness in US economic data reinforced the view that the Federal Reserve is nearing the end of its tightening cycle. The report showed US job availability fell to a nearly two-year low in February, suggesting the labor market is finally loosening up again. The focus will shift to Friday's important non-farm jobs report, with expectations that the actual number may be lower than the previous forecast of 236,000. Financial markets are now forecasting a 59% chance that the Fed will leave rates unchanged at its next policy meeting in May.