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 heads north, as bond gains inch up
On Thursday, the evergreen buck managed to rally because bond gains jumped and minutes from the Federal Reserve’s September gathering backed a rate lift in December.
Evaluating the purchasing power of the major American currency against a number of its primary rivals the USD index managed to jump by up to 0.13% coming up with a reading of 95.47.
On Thursday, Treasury gains managed to soar, with America’s 10-Year note approaching a one-week maximum of 3.211% as well as the 2-year note at a 10-year maximum. The ascend in bond gains occurred after hawkish Fed minutes disclosed the major financial institution’s conviction in gradually lifting interest rates in December and later.
The very likelihood that the Federal Reserve would have its rate lifted at its gathering in December was priced in at about 83.4%. That’s what Fed Rate Monitor Tool disclosed.
The evergreen buck managed to gain versus the Japanese yen. As a matter of fact, the currency pair USD/JPY headed south by 0.12% being worth 112.53. Additionally, data overnight revealed that Japanese exports inched down for the first time since 2016, contributing to fears over the influence of the US-China trade conflict on global surge.
In addition to this, the UK currency declined due to the fact British Prime Minister Theresa May had political clashes with her party after the statesman conceded that the United Kingdom might require extending its transition period from Brexit. The currency pair GBP/USD went down by 0.34% coming up with an outcome of 1.3069. The common currency declined too. The currency pair EUR/USD headed south by 0.14% reaching 1.1486.
Besides this, the Australian dollar gained. The currency pair AUD/USD soared by 0.27% being worth 0.7127. The currency pair NZD/USD surged by 0.20% showing 0.6563. USD/CAD added 0.12% trading at 1.3035.
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.