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 south on Fed worries
On Wednesday, the evergreen buck slumped versus most of its counterparts, suppressed by a mixture of downbeat factors including heightened fears over a partial American government shutdown as well as tension between the White House and the country’s key bank.
Worries of an American and global economic deceleration have sent American 10-year yields down by nearly 25 basis points in December, contributing to the soaring strain on the evergreen buck and further clouding its outlook.
As some financial experts pointed out, moderating American surge and political tensions aren’t favorable for the evergreen buck and they expect ongoing weakness.
The evergreen buck has struggled particularly against its Japan’s rival, losing ground for up to eight trading marathons because a broad risk-off move in financial markets brought benefits to the Japanese yen. On Wednesday, it attempted to stabilize in early Asian trade, soaring by up to 0.1% on the Japanese yen to 110.43.
Some experts are assured that the steep dive in American 10-year treasury gains has affected the greenback’s performance versus its rivals. Now American 10 year paper is soaring by up to 2.73%, having dived from 3% in early December.
As for the common currency and the UK pound, they managed to ascend by 0.2% each, ending up with respectively $1.1415 and $1.2705. The Australian dollar gained 0.1% trading at $0.7043.
For recent months the evergreen buck has struggled to shake off a soaring list of bearish factors, generally provoked by rumors over the outlook for American interest rates, diving bond gains as well as the dip in crude prices.
The previous week, the primary US financial institution had its interest rates increased for the fourth time in 2018, and mostly kept to its plans to lift rates in 2019 notwithstanding heightened economic risks.
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.