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 goes down
On Monday, the evergreen buck broadly dived versus a currency basket right after China and America pulled back from escalating their trade conflict, thus sending traders into risk-on mode and also affecting safe haven demand for the evergreen buck.
Gauging the greenback’s actual value against its main rivals the USD index declined by 0.51% hitting 96.69.
On Saturday, the White House told that Donald Trump informed Xi Jinping at the G20 summit that he wouldn’t increase levies on $200 billion of China’s products to about 25% on January 1 as expected.
Within 90 days the two leading economies are going to hold talks aimed at reaching an agreement.
The common currency gained ground against the evergreen buck. The currency pair EUR/USD managed to ascend by 0.42% trading at 1.1363.
The UK currency rallied too. The currency pair GBP/USD ascended by 0.26% being worth 1.2783.
The evergreen buck dived a bit versus Japan’s currency. The currency pair USD/JPY dipped by 0.12% trading at 113.42.
The Australian and New Zealand dollars, traditionally considered to be gauges of global risk appetite, steeply dived. The currency pair AUD/USD gained 1.09% being worth. 0.7386. As for NZD/USD, it ascended by 0.84% demonstrating 0.6924.
However, some financial analysts warned that a lot of issues still have to be tackled for risk sentiment to remain positive in the medium term.
Moreover, market participants will also closely watch American monetary policy, ahead of an anticipated rate lift by the key US bank at its upcoming gathering later this month that would be the fourth rate lift in 2018.
The developments over the weekend will give the key US financial institution more confidence to have rates lifted next year, as some financial analysts pointed out.
The previous week the evergreen buck was suppressed when markets took remarks by Fed Chair Jerome Powell as a sign that the Federal Reserve could speed down its program of lifting interest rates.
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.