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 US Treasury makes the Singapore dollar fall
We haven’t heard a lot on the Singapore dollar. Until today.
The US Treasury added Singapore to a watchlist for currency manipulation. The reasons behind this decision lie in the larger account surplus and net foreign currency purchases of around $17 billion in 2018, which equals to 4.6% of GDP. At the same time, the US Treasury avoided calling China a currency manipulator thus did not allow the further escalation of the US-China trade war.
After that, the Monetary Authority of Singapore commented that it does not engage in currency manipulation.
The USD/SGD pair has tested the resistance at 1.3819 since the beginning of the trading day. The next resistance lies at 1.3858. If the MAS takes measures to support its currency, the pair may fall back below the 1.38 level to the support at the central pivot at 1.3772. If we look at indicators, RSI entered the overbought zone and we can see its bearish divergence with the price.
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.