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 inches down, as common currency stabilizes
On Tuesday, the US currency slipped a bit versus its counterparts because the common currency managed to stabilize right after partners in the coalition in Germany stumbled over migration and it definitely threatened to have Chancellor Angela Merkel's government ruined.
As for te common currency, it was unchanged, sticking with $1.1626, having lost 0.45% overnight.
On Monday, the common currency had dived right after German Interior Minister Horst Seehofer shocked with his suddent wish to resign, although later it stabilized when his Christian Social Union managed to come to a compromise with Merkel's CDU as for illegal immigration. As a result, the resignation threat vanished.
The evergreen buck was still broadly underpinned. Apparently, trade tensions backed the evergreen buck against a number of commodity currencies, including the Australian dollar as well as emerging market assets whose economies traditionally happen to be extremely vulnerable to any downturns in trade.
Versus a group of key rivals, the USD index slipped by 0.1% being worth 94.955, having rallied about 0.45% the previous day.
Meanwhile, the Chinese Yuan managed to extend its losses on the back of anxiety ahead of July 6, exactly when American duties on exports from China are due to come true.
On Tuesday, the Chinese Yuan managed to rebound nearly 0.6% to its lowest value since August 2017 against the evergreen buck.
As for commodity-linked currencies, including the Australian dollar that has always been sensitive to any shifts in market sentiment toward China approached a 1-1/2-year minimum of about $0.7311.
On Tuesday, the Reserve Bank of Australia holds its monthly policy gathering and it’s generally anticipated to keep rates at about 1.5%, exactly where they have stayed since mid-2016.
Many market participants as well as financial analysts are eager to know whether Australia’s key bank is going to mention trade clashes between China and America or not.
Versus the Japanese yen, the evergreen buck slumped to 110.790 yen.
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.