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 is intact ahead of Fed gathering
On Wednesday, the evergreen buck stood still due to the fact financial markets waited for the conclusion of the Fed’s latest gathering, while the New Zealand dollar rallied versus the evergreen buck on a better-than-anticipated business confidence report.
The key American financial institution is widely anticipated to have interest rates lifted in the day. Financial markets also hope for another rate lift before the year end. However, the outlook for next year appears to be less clear.
As well as an interest rate verdict, the key US bank is going to uncover its summary of economic projections, disclosing policymakers' expectations on economic surge, unemployment, and inflation.
Tracking the greenback’s purchasing power versus its main counterparts the USD index didn’t change sticking with 93.73. Since August, the USD index has dived by 3%.
Global trade tension was still in focus because China’s Vice Commerce Minister Wang Shouwen told that the Chinese government would resume trade negotiations only if America demonstrates sincerity and gives up an idea of threatening China.
Then Wang told that the two partners were braced for having four rounds of negotiations, although America went back on what they had already agreed.
In the trade clash, America and China haven’t managed to make much progress on having direct talks, as some financial analysts pointed out.
Besides this, the New Zealand dollar jumped because September’s business confidence index from the Australia as well as New Zealand Banking Group amounted to -38.3 versus the ten-year minimum of -50.3 observed in August. As for the NZD/USD, this currency pair hit 0.6675, adding 0.5%. The currency pair AUD/USD managed to jump by up to 0.3% coming up with an outcome of 0.7275.
Aside from that, the currency pair USD/JPY went down by about 0.05% reaching 112.91.
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.