Morning of November 26: Central exchange rate stable

According to a survey by thoibaonganhang.vn, as of 9am this morning (November 26), the central exchange rate remained unchanged from the previous session. The USD buying and selling prices at some commercial banks were adjusted up and down with a common amplitude of 8-38 VND compared to the previous session.

The dollar eased slightly on Wednesday after a series of positive US economic data reinforced expectations that the Fed will cut interest rates in December. Investors also bet that the leading candidate for the next Fed chair position could pursue a more dovish stance.

The New Zealand dollar rose sharply after the Reserve Bank of New Zealand cut interest rates as expected but signaled a more hawkish stance for the policy path ahead. The Australian dollar also rose almost immediately after domestic data showed higher-than-expected inflation.

Specifically, the New Zealand dollar increased by 0.75% to 0.5663 USD, while the Australian dollar increased by 0.14% to 0.6478 USD, having previously increased by about 0.3% immediately after the data was released.

In the US, data on Tuesday showed retail sales rose less than forecast in September, while the producer price index (PPI) was in line with expectations. US consumer confidence fell in November as households worried about jobs and finances.

These data have traders continuing to increase bets on the possibility of the Fed cutting interest rates next month. According to the CME FedWatch tool, the market is currently pricing in an 84% chance of the Fed cutting by 25 basis points, thereby further putting downward pressure on the USD.

“Overnight data showed the US economy is slowing and reinforces the argument that the FOMC should cut rates soon,” said Carol Kong, foreign exchange strategist at Commonwealth Bank of Australia.

Amid a weaker USD, the euro edged closer to the $1.16 level and traded at $1.1567, supported somewhat by positive signals regarding the peace plan between Russia and Ukraine.

The pound was little changed at $1.3166 ahead of what is expected to be a crucial budget by Chancellor Rachel Reeves, who is expected to announce tax hikes amounting to tens of billions of pounds.

Investors have poured into the options market to hedge against large moves in the pound ahead of the budget results.

“Speculation and hedging activity in GBP has been increasing in the weeks leading up to the Autumn Budget,” said Thierry Wizman, global FX and rates strategist at Macquarie Group, adding that the pound could recover slightly if the budget is seen as “fiscally prudent.”

Against a basket of major currencies, the dollar index fell 0.03%, after losing 0.3% in the previous session, its biggest one-day drop in nearly three weeks.

Source: https://thoibaonganhang.vn/sang-2611-ty-gia-trung-tam-on-dinh-174190.html