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?
Market updates on July 8
- Last Friday the NFP outperformed the estimates. It increased by 224 thousand jobs (vs. 162 thousand expected). As a result, the USD strengthened and pulled EUR/USD down. On H4, the pair has been making modest gains towards the 1.1232 level. If this level is broken, the next resistance will lie at 1.1246. RSI is moving close to the 30 level and may signal a buying opportunity if it crosses this level from bottom to top. If the USD gets stronger, there is a possibility for the pair to break the 1.1219 level. The next support will lie at 1.1202.
- GBP/USD tested the lows at 1.2480 on Friday after the employment release for the US and stuck near the 1.2510 level. On H4, bulls need to push the pair above the 1.2541 level to confirm their strength. In that case, the cable will rise as far as the 1.2589 level will be reached. From the downside, pay attention to the 1.2510 and 1.2480 levels.
- After the Turkish president Recep Tayyip Erdoğan fired the head of the central bank as the Governor had not cut the interest rate, the Turkish lira fell down. On H4, USD/TRY formed a gap up at the beginning of the trading day. The rise of the pair was limited by the 100-period SMA near the 5.7557 level. If the Turkish lira continues to weaken, the next resistance levels will lie at 5.7794 and 5.8. On the other hand, the pair may correct to the support at 5.6967. The next support will lie at 5.6616.
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.