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 heads south against euro
On Friday, the US dollar slumped against the common currency during Asia trade after a moderate soar the day before.
The common currency rallied to $1.1811 versus $1.1795 at the close of the previous session.
The spot dollar index, calculated by Bloomberg, soared by 1% since the beginning of this week due to positive statistical data. The given indicator has been soaring for the fifth consecutive session, which appears to be the longest period of continuous surge since July 2015. During this period, the overall value of the index has gained by 4.2%.
Today, the value of the index is steady.
Financial analysts point out that the evergreen buck strengthens, as firm statistical data weakens worries that high yields of government securities are applying pressure on economic growth. The greenback happens to be the preferred currency for buying because the situation in the American economy is better compared to the eurozone or the United Kingdom, where worries of slowing growth remain.
On Friday, the revenue on 10-year US Treasuries rallied by 1 basis point, hitting 3.12%, which turns to be the maximum outcome since 2011. Since the beginning of this week it ascended by 15 bpts.
The US currency keeps appreciating against the Japanese national currency, concluded the eighth week in a row – that’s the longest such period since October 2014.
The increase in the key consumer price index in Japan speeded down for the second month in a row, and it demonstrates that the inflation target in the country is still out of reach.
The evergreen buck against the Japanese yen rallied to up to 110.88 yen versus 110.77 yen the day before.
As for the common currency, it was worth 130.95 yen versus 130.65 yen at the close of the previous trading session.
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.