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.

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