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?
Keep an eye on US inflation data
The United States will publish CPI and core CPI on September 11, at 15:30 MT time.
Instruments to trade: EUR/USD, USD/JPY, GBP/USD
The consumer price index represents the change in the price of goods and services purchased by consumers. We pay attention to this indicator, as the consumer prices account for a majority of overall inflation. Based on the level of CPI, the central bank decides about further monetary policy actions. There are two forms of CPI: headline and core. The difference between them is simple: the core indicator excludes food and energy prices due to their volatility. Last time, both indicators advanced by 0.6%. As a result, the US dollar strengthened in the short term. Will the reaction of the greenback be more significant?
- If the indicators are higher than the forecasts, the USD will go up;
- If the indicators are lower than the forecasts, the USD will go down.
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.
The US dollar’s weakness offered a boost to emerging-market currencies and oil.