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 keeps retreating vs. counterparts
On Tuesday, the evergreen buck kept retreating versus its counterparts, shrugging off mostly upbeat economic data because America’s deal with Mexico soothed trade worries, thus cutting demand for the evergreen buck.
Estimating the purchasing power of the US currency versus a pack of its main rivals, the USD index slumped by 0.23% being worth 94.45.
Upbeat mood over trade relations after America came to a compromise with Mexico on Monday helped market participants to keep unwinding their bullish trading positions on the evergreen buck, some of which had been opened on the back of trade uncertainties.
However, still escalating trade clashes remained due to the fact that investor focus moved to US-Canada trade negotiations that got underway on Tuesday. On Tuesday, American Treasury Secretary Steven Mnuchin told that the current US presidential administration's goal suggests rapidly getting Canada on board.
On Monday, US leader told that his administration had managed to reach a deal with Mexico on a number of issues that have turned the renegotiation of the North American Free Trade Agreement upside down, the current trilateral trade pact among Canada, Mexico and the United States.
The currency pair USD/MSN jumped by 1.10% hitting 18.9712. Additionally, the currency USD/CAD slumped by 0.38% being worth C$1.2918.
Positive data showing consumer confidence reached an 18-year maximum as well as firm regional manufacturing ensured a moderate leap from minimums in the evergreen buck.
In August, the Conference Board’s consumer confidence indicator ascended to 133.4 from July’s outcome of 127.9, surpassing experts’ estimate for an outcome of 126.7.
The currency pair GBP/USD stood still sticking with $1.2889 because worries of a no-Brexit deal that would see Great Britian crash out of the EU without a trade deal with the trading bloc, kept taming profits in the currency pair.
The currency pair USD/JPY slumped by 0.01% reaching Y111.06.
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.