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 stands still after soar
On Friday, the evergreen buck stood still versus its peers because the recovery observed earlier this trading week faded away ahead of the new quarter that could potentially apply fresh pressure on the major American currency.
The US dollar index that traditionally rates the evergreen buck’s strength versus a group of six other leading currencies, didn’t change, demonstrating at 90.089.
The index managed to surge 0.8% for the week – it hit a one-week maximum of 90.178 due to factors including weakening worries as for global trade as well as definite progress on North Korea issues.
For the quarter the US dollar index inched down over 2%, which is its fifth straight quarter of dives.
The US currency that dived to a 16-month minimum of 104.560 on Monday due to global trade woes stood still offering a result of 106.440 yen. This week it has edged up 1.6% and sagged 5.5% for the quarter.
The common currency didn’t change showing $1.2301 after losing 0.4% this week. For the quarter the common currency tacked on 2.5%.
The UK currency stood still at $1.4021, not far from a one-week minimum of $1.4011 hit yesterday.
This quarter the British pound has rallied 3.8%, which is its best outcome mid-2015, backed by expectations for a transition Brexit deal that was successfully agreed earlier in March and also strengthening hopes that the Bank of England could have interest rates lifted soon.
As for the Australian dollar, this commodity currency rallied 0.1% ending up with $0.7686, drifting away from a three-month minimum of $0.7648 hit on Thursday, suppressed by the greenback’s broad rebound as well as lower prices of commodities, including iron ore.
For the quarter the Australian dollar slumped 1.7%.
Key currencies had to fluctuate in rather a narrow band with many of the world's major markets unavoidable on Friday due to a holiday.
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.