During the daily press briefing of Andres Manuel Lopez Obrador, it was announced that Mexico will receive 1.4 million doses of the vaccine by the end of January. Is that optimistic enough for the peso?
Currencies wrap: the best, the worst, the most volatile
The week is over and now it is time to underline how successful it was. Below we gathered the best and the worst performers of the week and the most volatile pairs .
Best-performing currency pairs
Among the best performers, we can mention USD/MXN and USD/CNH. While the first pair has managed to gain around 2000 pips in a week recovering from the losses of September 2018, the USD/CNH showed a solid gain of more than 700 pips. Of course, the weakening of the Chinese yuan is strictly connected with the fears surrounding coronavirus in China.
Among major currency pairs, we can name USD/CAD as the strong performer during this week. The pair rose on the weaker oil prices above the 200-week SMA and tested the 100-week SMA at 1.3160. The pair has strengthened by more than 100 pips.
Worst-performing currency pairs
The worst performers, of course, were the pairs with the JPY as a quote currency. This is due the risk-off sentiment, which traders to invest in the safe-haven assets. Here we can mention USD/JPY. The pair went down from 110.07 to 109.27 after the previous two weeks of gains.
Also among the losers we can name AUD/USD and EUR/USD. Both pair have been having tough weeks.
The most volatile currency pairs
The award for the most volatile currency pair goes to USD/ZAR. On the daily chart, the pair could not stick above the 50-day SMA after the test of 200-day SMA at 14.5660 and fell towards the 14.3050 level. However, bulls did not give up their attempts to push the pair higher, as a result the pair has retested 14.47 on Friday.
GBP/USD also showed a mixed performance between the support at 1.3 and the resistance at 1.3175.
What changes will we see during the upcoming week? Let’s wait and see. All you need to do is follow our news and
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.
The US dollar’s weakness offered a boost to emerging-market currencies and oil.