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 soars ahead of Fed meeting
On Wednesday, the evergreen buck kept soaring after the recovery based on of previous trading outcomes.
This week there’re meetings of the management of three key world financial institutions (the Federal Reserve System, the Bank of Japan and the European Central Bank), and all the attention of traders is focused on these crucial events.
Market experts of Credit Agricole foresee that the common currency will hit $1.26 by the end of 2018. Moreover, analysts of Societe Generale expect the value of the euro to tack on to $1.3 within the next six-twelve months. As for JPMorgan, its analysts are assured that by the middle of 2019 the exchange rate will amount to $1.23.
Market experts actually don’t expect a change in monetary policy in the EU and Japan, although ECB Governor Mario Draghi might drop a hint a completion of the asset repurchase initiative in 2018.
The vast majority of financial analysts hoped for a leap in the cost of lending in the United States. Besides this, after the gathering representatives of the Federal Reserve is going to uncover fresh quarterly macroeconomic forecasts as well as an updated prediction for the further interest rate hikes. Then Chairman of the Fed Jerome Powell is about to hold his second press conference since he had taken office in February.
The common currency dipped versus the evergreen buck, hitting $1.1734 in contrast with $1.1745 recorded at the close of the previous trading session.
Against the Japanese currency, the euro rallied to 129.76 yen versus 129.64 yen demonstrated in the previous business day. Additionally, the evergreen buck ascended versus the Japanese yen reaching 110.56 yen in contrast with 110.37 yen on Tuesday.
ICE US Index Dollar, estimating the value of the greenback versus a bunch of six main rivals, managed to ascend by approximately 0.03%.
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.