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 slides after Yellen
On Thursday, the evergreen buck decreased versus a currency basket after Fed Chair Janet Yellen repeated that rate lifts would be gradual. Meanwhile, the Canadian dollar approached 13-month peaks after Canada’s major financial institution raised interest rates.
The US dollar index, which estimates the US currency’s value against six crucial currencies, declined 0.26%, trading at 95.30, which is close to the nine-month minimum of 95.22 achieved in late June.
Market participants are waiting for Friday’s American inflation figures for June due to their potential impact on the key US bank’s policy.
The greenback stood still versus the Japanese yen. The currency pair USD/JPY reached 113.13, having dipped to a one-week minimum of 112.87 overnight.
The common currency edged up, with EUR/USD soaring 0.32% and getting to 1.1447, rebounding to the 14-month peak of 1.1489 hit on Wednesday.
The Canadian dollar tacked on, with USD/CAD showing 1.2739, which is not far from the 13-month minimum of 1.2679 hit on Wednesday after the Bank of Canada raised interest rates.
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.