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 languishes at 10-month minimum
On Tuesday, the evergreen buck slumped to a 10-month minimum versus a basket of key currencies. It was caused by uncertainty over the pace of the Fed’s policy tightening and concerns that Donald Trump won’t be able to deliver healthcare reforms.
Versus a basket of six crucial currencies the US dollar’s index decreased to a 10-month minimum of 94.75. Apparently, from its 14-year high of 103.82 hit on January 3, it has dropped 8.4%.
Friday's dismal reading on American inflation along with retail sales also spurred speculation that the major US bank might not have justification for another rate lift by the end of 2017 notwithstanding policymakers' projection for such a move.
Meanwhile, Great Britain and Canada have recently hinted they could adjust their monetary policies, with the Bank of Canada lifting rates the previous week for the first time since 2010.
The greenback’s loss accelerated after the common currency grew above a key big number of $1.15.
The euro surged 0.4% being worth $1.1528, reaching its highest value since May the previous year.
Against the Japanese yen the greenback dived 0.4%, trading at 112.30 yen.
The Canadian central bank will make a monetary policy report and announce interest rates on Wednesday, January 20, at 17:00 MT time. Also, the BOC press conference will be held later.
USD’s rally takes a pause, while riskier assets are modestly rising.
We are now past the middle of January, and this means that the largest US companies will report their earnings for the fourth quarter and many of them will provide the results of the entire 2020.