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?
Currency market on December 9
Welcome to the new week! The Asian trading session demonstrated slow action today. The main attention of traders is paid to the news concerning the US-China developments ahead of the US tariffs deadline scheduled on December 15. Let’s wait for further updates for that matter and check the key levels for the pairs.
The British pound continues its rally
GBP/USD has been trading at the highest levels since May. The bull’s optimism was boosted by the extension of the Conservative Party’s lead in the most recent UK election poll. GBP/USD has been knocking the resistance at 1.3170 on H4. If this level is broken, the next key level will lie at 1.3197 and 1.3220. From the downside, the support levels will be placed at 1.3125 and 1.31.
NZD/USD is near the 50-week MA
Last week was very bullish for NZD/USD, as the pair has risen to its July highs. On the daily chart, the kiwi broke the 200-day MA on Friday. Now we can see that the pair is facing a correction. On H4, the pair has slid lower to the 0.6540 level. We can see, that the price is trading within the ascending trading channel, that is why traders may open positions on the pullbacks from its lower border. The RSI oscillator is looking down, and MACD formed a lower high, which are bearish signals. In case of a breakout of 0.6540, bears need to pay attention to the 0.6520 level. From the upside, the retest of the 0.6574 level will be attractive for bulls.
Post-NFP action of USD/CAD
The Canadian dollar weakened against the USD on Friday after a greater-than-expected American job data. That is why it is not a surprise that the pair has started to consolidate today after the increased Friday’s volatility. On H4, the pair has been trading right below the crossover of 50- and 100- period MAs. The key levels for bulls lie at 1.3262 and 1.3282. The downward momentum is limited by the 1.3250 and 1.3235 levels.
Poor US data, slow vaccine distribution, rising virus cases worsened the market sentiment and underpinned safe-haven currencies like the USD, and JPY.
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.