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 dives ahead of Fed testimony
On Tuesday, the evergreen buck declined ahead of congressional testimony by Fed Chair Jerome Powell that market participants are going to scrutinize for signs on the tempo of American interest rate lifts as well as risks coming from trade clashes.
On Tuesday, Powell is on the verge of testifying on the American economy as well as monetary policy before the US Senate Banking Committee.
The statesman is anticipated to deliver a positive message on the outlook for surge and reaffirm the key US bank’s gradual monetary tightening policy. However, Powell is expected to be bombarded with hard questions as for the Fed’s independence and how the major bank would deal with the intensifying global trade conflict.
Financial experts at Societe Generale are assured that the worsening trade clash is getting a realistic threat, which could put pressure on market sentiment as well as capital spending.
The evergreen buck slumped 0.2% versus a group of six key currencies, offsetting small leaps recorded during the morning trading session.
The evergreen buck stood still versus the Japanese yen, showing 112.27 yen, having approached a six-month maximum of 112.80 yen.
The evergreen buck’s revenues have been capped this year by fears over the intensifying trade clash between China and America, although the worries haven’t ruined the US dollar’s firm performance so far.
On Monday, the International Monetary Fund had warned that worsening and sustained trade clashes following American tariff action might confound economic recovery and also depress medium-term surge prospects.
The common currency and the British pound added a bit versus the evergreen buck. The euro managed to leap up to 0.2% coming up with an outcome of $1.1738 having weakened 0.5% the previous. Meanwhile, the UK currency rallied 0.1% being worth $1.3255.
As for the Australian dollar, it ascended 0.1% trading at $0.7428.
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.