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 goes down on Trump’s menace to veto spending bill
On Friday, the evergreen buck turned to be lower versus a pack of other main rivals. It’s because worries of a global trade conflict kept the US currency down. As for another crucial factor, it was Donald Trump’s outrageous threat to have the spending bill vetoed.
Appreciating the US currency’s value versus a trade-weighted group of six leading rivals, the US dollar index headed south 0.30% coming up with a reading of 89.20.
On Thursday, Trump rolled out duties on $50 billion worth of China’s imports in response to this Asian country’s unfair capture of American intellectual property.
As for China, this country instantly responded with plans to impose its own duties against the United States, thus driving worries among traders of a global trade conflict.
The key US bank’s decision to have the interest rate raised by about 25 basis points on Wednesday and also step up the overall tempo of tightening has also put pressure on the US currency.
Aside from that the US President threatened to have the $1.3 trillion spending bill vetoed, which was approved yesterday due to the fact, it doesn’t provide financing for a deal with the 800,000 Deferred Action for Childhood Arrivals recipients or a border wall. It’s expected that the veto would have the US government shut down at midnight.
The evergreen buck went down to a two year minimum versus the safe haven yen. The currency pair USD/JPY went down 0.10% being worth 105.17.
The common currency headed north, with the currency pair EUR/USD adding 0.32% being worth 1.2341.
The currency pair GBP/USD acquired 0.31% showing 1.4139 following news that the European Union had decided to adopt a negotiation stance on an upcoming trade tie with Great Britain after it leaves.
The market optimism waned amid stricter restrictions to control rising coronavirus infections. S&P 500 and Nasdaq dropped from the all-time highs, while the USD jumped higher.
S&P 500 skyrocketed to the all-time high on optimism that Biden’s fiscal stimulus will support economic growth and boost corporate earnings.
PMI reports from the EU, the UK, and the USA will be released during the day!