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 inches up as inverted yield fears recede
On Tuesday, the evergreen buck managed to go up due to the fact that bond gains rebounded, thus soothing fears over the health of the American economy despite dismal housing data.
Assessing the purchasing potential of the evergreen buck versus its main rivals the USD index went down by 0.2% ending up with 96.213.
The gain on the benchmark US 10-Year note accounted for 2.435%. Fears about an inverted bond gain receded because experts noted that inversions should last a long time to confirm a meltdown.
Still, downbeat data indicated a struggling housing sector in America that appears to be a major gauge of the American economy. As a matter of fact, housing starts decreased by approximately 8.7% to a seasonally-updated annual rate of about 1.162 million units in February, as the Commerce Department informed, which is quite below a consensus estimate for 1.213 million units.
Well, the numbers question whether the major US financial institution’s extended pause on rate lifts the previous week will help the struggling sector.
The major US bank has taken a step back on interest rates because Fed policymakers are greatly concerned about the global and domestic surge.
The evergreen buck managed to surge versus the safe-haven Japanese yen. The currency pair USD/JPY headed north by 0.05% showing 111.46.
The UK pound dived a bit because British lawmakers managed to take control of the Brexit process from the country’s Prime Minister Theresa May, thus giving green light to alternatives to the agreement Theresa May made with Brussels. The currency pair GBP/USD went up by about 0.1% being worth 1.3214.
In addition to this, the currency pair AUD/USD ralli9ed by up to 0.4% demonstrating an outcome of 0.7138. As for NZD/USD, it surged by 0.1% reaching 0.6909. Besides this, the Canadian dollar jumped. The currency pair USD/CAD dived by 0.1% hitting 1.3390, while EUR/USD slumped by 0.3% reaching 1.1278.
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.