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 up
On Tuesday, the evergreen buck surged due to the fact that China and America are on the verge of extending trade negotiations into Wednesday.
Officials from the two countries are expected to meet in Beijing and negotiations are going to be extended to a third day, backing a hoped that the two leading economies around the globe could have their differences resolved before a March 1 deadline.
At the U.S. delegation's hotel, Assistant Secretary for Fossil Energy at the US Department of Energy, Steven Winberg confirmed the extension to journalists. However, the US statesman didn’t answer other questions.
Evaluating the purchasing power of the American dollar versus its primary peers the USD index jumped by about 0.3% ending up with 95.55.
The evergreen buck surged versus the Japanese yen. The currency pair USD/JPY headed north by 0.05% trading at 108.73.
Market participants are also looking ahead to a speech from US leader, in which he’s anticipated to address the government shutdown as well as building a wall on the border with Mexico. American leader has told that he won’t have a budget signed unless it includes financing for that wall. His remark has resulted in an impasse with Congress.
In addition to this, the common currency headed south in the face of a sudden dive in German industrial output that sparked fears of a deceleration in the region and could hinder the European Central Bank’s initiative to wean off its stimulus programs. As a matter of fact, the currency pair EUR/USD tumbled by 0.34% being worth 1.1433. The UK pound dived by 0.4% against the backdrop of ongoing Brexit pressure because the vote for a withdrawal pact goes before Parliament next week. The currency pair GBP/USD hit 1.2720.
The currency pair AUD/USD slumped by 0.3% being worth 0.7127. NZD/USD went down by 0.5% hitting 0.6713, while USD/CAD stood still at 1.3295.
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!