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?
Evergreen buck generally dives
On Thursday, the evergreen buck slipped versus a group of its key opponents because a global sell-off in stocks and bonds gained momentum, backed by fears over the impact of soaring interest rates.
Tracking the purchasing potential of the evergreen buck the USD index lost 0.16% being worth 95.07 having dipped to 94.88 overnight.
Stock markets across the European Union went down after abrupt overnight losses in Asia as well as the largest dive for American equities for more than eight months on Wednesday because surging US Treasury gains backed a shift from risky assets.
10-year Treasury gains managed to reach the highest value for seven-and-a-half years earlier this week against the backdrop of hopes for a faster than anticipated tempo of rate lifts from the Fed because the outlook for the American economy is still firm.
The abrupt dives on Wall Street gave Donald Trump grounds to criticize the Federal Reserve on Wednesday, labeling the key US bank as “crazy” for its plans to proceed with its gradual rate lifts in the nearer months.
On Thursday, the gains on 10-year Treasury notes strengthened in the face of increased aversion.
The evergreen buck stabilized versus the safe haven Japanese currency. The currency pair USD/JPY hit 112.28, reviving having dived to a three-week minimum of 111.98 overnight.
This week the Japanese yen has been underpinned after the International Monetary Fund had its global surge estimated reduced, warning that trade clashes are starting impacting the world’s economy.
The common currency rallied versus the evergreen buck. The currency pair EUR/USD added 0.24% trading at 1.1549.
The common currency’s profits were held in check against the backdrop of an everlasting clash between Italy’s populist cabinet and Brussels over Italy’s budget plans.
As for the UK currency, it stood still, sticking with 1.3188.
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.