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?
The rate cut may weaken the USD
The Federal Open Market Committee will publish a rate statement and announce an official rate at 20:00 MT on October 30. After that, at 20:30 MT, the Fed Chair Jerome Powell will conduct a press conference.
The analysts anticipate a rate cut by 25 basis points. If the Fed reduces the interest rate, it will be the third policy easing of the year. The Fed Chair Jerome Powell characterizes these interest rate decisions as the central bank’s mid-cycle adjustment. The slash of interest rate would be highly appreciated by the US President Donald Trump amid his criticism of the Fed's monetary policy. Also, it is recommended to pay attention to the tone of the statement, as it may affect the USD.
• If the rate cut happens, the USD will fall;
• If the rate cut does not happen, the USD will rise.
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.