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 November 25
- During the weekend, China announced that it will raise punishments for violations of intellectual property rights. That move may be considered as a good step towards the US-China trade deal. It boosted the risk sentiment in the market. The Australian dollar inched higher towards the resistance at 0.6798 on H4 but slid down to the descending trend line and the support level at 0.6785. If this level is broken, the next support will lie at 0.6776. If the pair retests the 0.6798 level, the chance of reaching the resistance at 0.6810 will increase.
- USD/JPY has strengthened and tested the resistance at 108.85 on H4. In case of a breakout of this level, bulls will push the pair to the next resistance at 108.97. On the other hand, if the risk sentiment falls, the pair will be driven lower to the 108.65 support level. The next key level in bears' attention will be at 108.55.
- The risk-on sentiment resulted in the strength of the Chinese yuan. On H4, the pair has fallen lower towards the 50-period SMA at 7.0260. At the moment of writing, bulls have been making attempts to recover to the 7.0323 level. If this level is broken, the next resistance will lie at 7.0430. If bears succeed in the test of the 7.0260 level, further supports will lie at 7.0230 and 7.0164.
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.