Breaking: Risk rally picks up steam after Moderna says vaccine is 94.5% effective

Eren Sengezer FXStreet

Risk flows started to dominate financial markets on Monday after Moderna announced that the latest trial showed that its coronavirus vaccine candidate if 94.5% effective. Additionally, the company said that the vaccine is expected to remain stable at standard refrigerator temperatures of 2° to 8°c for 30 days, per Reuters.

The company further noted that the vaccine is expected to last for 6 months in shipping and long-term storage conditions at standard freezer temperatures of -20°c (-4°f).

According to the statement, Moderna will be seeking authorization for emergency use of the vaccine in the US in the coming weeks. Moreover, the company added that it already has millions of dozes ready to ship pending FDA authorization.

Market reaction

With the initial market reaction, gold came under strong selling pressure and the XAU/USD pair was last seen losing more than 1% on a daily basis at $1,865.

Additionally, the S&P 500 futures are now up 1.05% on the day, confirming the positive shift in market sentiment.

Covid Vaccine: Pfizer's success promising for three other efforts, rally may have only just begun.

A COVID-19 vaccine is at hand – the earth-shattering news from Pfizer and BioNTech has sent markets surging. Immunization efforts have been in the works for many months and the world was hopeful for a breakthrough before the end of the year. Nevertheless, the announcement is a massive development.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

GBP/USD surges to multi-day peaks past 1.3250

GBP/USD leaves behind Friday’s small pullback and advances past 1.3250 level, or five-day highs, on Monday. Cable’s upside follows extra losses in the Greenback, while traders continue to assess the geopolitical front and upcoming key events.

EUR/USD softens to near 1.1400 as ECB tightening bets fade

The EUR/USD pair trades with mild losses around 1.1415 during the early Asian session on Tuesday. The Euro softens against the US Dollar as traders reduce their bets on the European Central Bank rate hikes this year.

Gold tumbles 1.5% to fresh seven-month lows below $3,950

Gold remains under strong selling pressure for the second straight day early Tuesday, refreshing seven-month lows below $3,950. Renewed US-Iran hostilities over the weekend cast doubts over the sustainability of the peace deal. This, along with elevated expectations for Fed rate hikes, offers some support to the US Dollar and undermines the bullion.

Bitcoin stalls at $60K as buyer conviction fades, Strategy authorizes BTC sales

Bitcoin is trading around the $60,000 level on Monday after a sharp decline last week. With the top crypto struggling to recover, analysts suggest the market remains firmly in defensive territory as investors await stronger signs of demand.

Just like Fed, is BoJ’s independence under threat?

When talking about central bank independence, most of the focus has been on Donald Trump’s pressure on the Federal Reserve. But a similar story, a quieter one for now, seems to be happening on the other side of the Pacific: Japan’s government may be testing the Bank of Japan’s independence.

Kevin Warsh isn't expected to say much in Sintra: That's exactly why markets will listen

Financial markets could find an important catalyst in the enchanting, fairytale-like landscape of Sintra this week. The ECB Forum will, as it does every year, gather the crème de la crème of central banks. The new boss at the Fed, who has clearly said that the Fed should stop explaining everything, will need to talk – and traders should listen.