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 is intact in risk-off trade
On Wednesday, the evergreen buck was nearly intact versus a currency basket due to the fact that resurgent worries over the US-China trade conflict affected demand for risky assets. Meanwhile, the British pound was still on the back foot because a parliamentary debate on the government’s Brexit plan resumed.
On Tuesday, Wall Street went down because a bunch of tweets by American leader Donald Trump had an impact on investor confidence. Trump’s message stated that a full resolution to the US-China trade clash is going to be reached for a 90-day trade truce.
US leader threatened to slap higher levies on China soon unless this Asian country makes a seris of concessions, driving worries over the outlook for global surge.
Fears about American bond markets indicating an impending recession also put pressure on market sentiment.
Gauging the purchasing power of the American dollar versus its main rivals the USD index stood still sticking with 96.93.
Trading volumes were anticipated to stay low, with American markets unavailable for a national day of mourning for ex-US leader George H. W. Bush.
The evergreen buck managed to surge a bit versus the Japanese yen. The currency pair USD/JPY jumped by up to 0.2% trading at 112.99.
As for the common currency, it was nearly intact against the greenback. The currency pair EUR/USD showed 1.1338.
The UK currency jumped a bit against the American dollar. The currency pair GBP/USD headed north by up to 0.13% trading at 1.2732.
On Tuesday, the UK pound went down to its lowest value since June last year after a bunch of defeats in UK Parliament for the country’s Prime Minister Theresa May over her Brexit plan.
The UK currency will probably remain under pressure ahead of the major parliamentary vote on the Brexit agreement on December 11, against the backdrop of fears over whether the vote will pass or not.
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.