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?
Greenback declines in Asia on lack of Fed views
On Monday, the evergreen buck held weaker versus the Japanese yen in Asia because traders failed to get some signs from the key US bank at the weekend on policy as well as the economic impact of the huge Hurricane Harvey in Texas was still being estimated.
Measuring the greenback’s value against a trade-weighted basket of six crucial currencies, the US dollar index lost 0.02% being worth 92.45.
The currency pair USD/JPY hit 109.18 sliding 0.17%. AUD/USD reached 0.06% soaring to 0.7939, EUR/USD declined 0.02% being worth $1.1923. As for GBP/USD, this pair rallied 0.04% trading at 1.2884.
The previous week, the evergreen buck dived versus a basket of the other key currencies on Friday and demonstrated its lowest value versus the common currency in more than two years because market participants digested speeches by global major bank governors.
The US dollar index has declined about 10% so far this year amid everlasting uncertainty over the economic agenda of Donald Trump as well as doubts that the Fed is going to deliver a third rate lift this year.
USD’s rally takes a pause, while riskier assets are modestly rising.
We are now past the middle of January, and this means that the largest US companies will report their earnings for the fourth quarter and many of them will provide the results of the entire 2020.
Poor US data, slow vaccine distribution, rising virus cases worsened the market sentiment and underpinned safe-haven currencies like the USD, and JPY.