Morning of November 12: Central exchange rate increased by 11 VND

According to a survey by thoibaonganhang.vn, as of 9am this morning (November 12), the central exchange rate increased by 11 VND compared to the previous session. The USD buying and selling prices at all commercial banks were adjusted to increase with a common amplitude of 12-20 VND compared to the previous session.

The dollar weakened after a private sector jobs report showed signs of weakness in the US labor market, as investors braced for the possibility of the US government reopening and the release of a series of delayed economic data.

According to the ADP employment report, US businesses cut an average of more than 11,000 jobs per week through the end of October, reflecting a slowing hiring trend, a factor closely watched by the US Federal Reserve (Fed).

Immediately after the data was released, the USD fell and had difficulty recovering as investors increased bets on the possibility of the Fed cutting interest rates in December.

The euro fell 0.05% to $1.1576.

The pound traded at $1.3139, down 0.08%, away from a seven-month low hit earlier.

The US dollar index, which measures the greenback's strength against a basket of major currencies, fell to its lowest in more than a week, currently hovering around 99.46.

“Recent data suggests that the labor market is weakening, albeit gradually. We will get more evidence when official data is released after the government reopens,” said Sim Moh Siong, currency strategist at Bank of Singapore.

Traders now see a 68% chance of a 25 basis point rate cut next month, up from 62% the day before, according to CME's FedWatch tool. In the U.S. bond market, the 10-year yield fell 3 basis points to 4.0791%, while the two-year yield fell to 3.5596%.

“The balance of risks, from the labor market, inflation to consumption, still supports the possibility of the Fed cutting interest rates by 25 basis points next month,” said Brian Martin, Head of G3 Economics at ANZ.

Fed policymakers have been more cautious about easing recently, citing a lack of key economic data due to the U.S. government shutdown. However, the possibility of a federal government reopening may be imminent when House members return to Washington on Tuesday to vote to end the longest government shutdown in history.

The Republican-controlled House of Representatives is expected to vote on a compromise to restore funding for federal agencies and end the shutdown that has lasted since October 1.

This information supported the Australian and New Zealand dollars to edge up slightly.

The Australian dollar is currently trading at $0.6523, up 0.05%.

The New Zealand dollar rose 0.07% to $0.5659.

The Japanese yen, on the other hand, remained under pressure as risk sentiment increased. The yen fell 0.1% to 154.32 yen per dollar, after hitting a nine-month low of 154.495 yen in the previous session. The currency has fallen nearly 0.5% so far this week.

The yen was also pressured by expectations of fiscal easing by the Japanese government as Prime Minister Sanae Takaichi said she wanted to set a new long-term fiscal plan that would allow for more flexible spending - a view that contrasts with the Fed's tightening policy.

Source: https://thoibaonganhang.vn/sang-1211-ty-gia-trung-tam-tang-11-dong-173443.html