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 on Fed talk
On Wednesday, the greenback drifted away from 4-1/2-month minimums against a currency basket after solid data backed hopes for more American interest rate lifts this year, while the British pound was knocked by the UK triggering its exit from the EU.
The dollar index, estimating the greenback’s value against six key rivals, managed to grow to 99.751. It crawled off a minimum of 98.858 reached earlier this week, its weakest value since November 11, in the wake of Donald Trump's failure with his healthcare reform bill.
The healthcare failure reform drove doubts that Trump would be able to carry out his fiscal stimulus as well as tax cuts, and weighed the greenback to 110.11 yen, its lowest outcome since November 18.
Besides this, US Federal Reserve Vice Chairman Stanley Fischer also gave the greenback a lift as he stressed in a television interview that two more hikes to American overnight interest rates this year seemed right.
The market optimism waned amid stricter restrictions to control rising coronavirus infections. S&P 500 and Nasdaq dropped from the all-time highs, while the USD jumped higher.
S&P 500 skyrocketed to the all-time high on optimism that Biden’s fiscal stimulus will support economic growth and boost corporate earnings.
PMI reports from the EU, the UK, and the USA will be released during the day!