Breaking: US will have effective Covid-19 vaccine by year-end – Fauci

FXStreet Team FXStreet

Reuters reports that the leading US expert on infectious diseases, Dr. Anthony Fauci, predicted on Wednesday the country will meet its goal of a coronavirus vaccine by year's end and was unmoved by the prospect that China would get there first.

While there are no guarantees,

I feel good about the projected timetable,

Fauci told Reuters in an interview.

His comments follow promising early-stage data for the Moderna Inc's coronavirus vaccine, released on Tuesday, that was developed by scientists at the National Institute of Allergy and Infectious Diseases, which Fauci directs.

Key notes

Infectious disease expert Fauci tells Reuters that u.s. will have effective coronavirus vaccine by year-end.
Fauci tells Reuters that Moderna's vaccine trial results were especially promising.
Fauci tells Reuters he does not think China will be first with a vaccine, at least not by much.

Fauci also said Moderna's results were especially promising because the vaccine appeared to offer the type of protection seen in a natural infection.

One of the things that you hope for is that your vaccine induces a response that's comparable to a natural infection, because theoretically, the best vaccine you could possibly ever get is a natural infection.

Reuters explained that "Moderna's candidate, which is set to enter the last stage of testing on July 27, is just one of more than a hundred vaccines in development globally, but only one of a few contenders that have earned millions of dollars in backing from Operation Warp Speed, the White House program that aims to deliver more than 300 million doses of a safe and effective COVID-19 vaccine by January."

Market implications

The market reaction to these comments from Fauci was muted considering the news dropped yesterday that there are promising signs with the vaccine following results of the test on 45 volunteers which revved-up and improved their immune systems.

Many experts see a safe and effective vaccine as the only way out of the pandemic that has infected millions and killed more than 575,000 people worldwide.

However, the statements made today should cement the improved risk-on themes in markets as we run into key economic data released today from China and ahead of US Retail Sales and the European Central Bank, likely playing second fiddle, however, to the EU summit this weekend.

Inflation pressures will be the theme fs the vaccine rubber hits the road, a topic discussed in the following usual suspects earlier today:

Gold prices march-on above a key support structure as inflation expectations ramp-up

DXY meeting resistance in a bullish correction, bears lurking on risk-on themes gaining traction

Update from after the bell:

Oxford scientists believe they could have a breakthrough on Covid-19 vaccine – Telegraph

Author

FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

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