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 steadies
On Tuesday, the evergreen buck managed to stabilize in Asia because the International Monetary Fund had its 2019 as well as 2020 global surge forecasts cut overnight.
The IMF currently projects a 3.5% surge rate worldwide for this year and also 3.6% for next year. Eventually, these are 0.2% and also 0.1% below its previous estimates in October.
The fund cited a “no deal” Brexit, China-US trade clashes, a resumed tightening of financial conditions as well as a deeper-than-expected deceleration in China as the major reasons for the downgrade.
The news showed up several hours after on Monday China posted its slowest quarterly economic surge since the financial meltdown.
The Chinese economy managed to ascend by 6.4% in the fourth quarter of the previous year from 2017, as anticipated. The surge appeared to be slower than the previous quarter's outcome of 6.5%.
For last year the full-year surge accounted for 6.6%, which turns out to be in line with expectations.
On Tuesday, the USD index rallied by 0.1% being worth 96.058.
Market participants are also waiting for further news on the US-China trade clash, as Chinese Vice Premier Liu He is braced for visiting America on January 30 and 31 for another round of trade negotiations.
As a matter of fact, the Japanese yen headed north. The currency pair USD/JPY went down by 0.2% being worth 109.43.
The Chinese Yuan rallied by 0.2% showing 6.8022 because China’s major financial institution had the Yuan reference rate set at 6.7854 in contrast with yesterday’s outcome of 6.7774.
As experts at Morgan Stanley told, they’d turned bullish on China’s currency due to the fact they were assured that China’s major bank would stay away from intervening during trade negotiations.
The currency pairs AUD/USD and NZD/USD went down by respectively 0.3% and 0.1%.
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.