Fauci: Safe and effective vaccine is coming by November

Ross J Burland FXStreet

While COVID-19 has infected more than 25 million people worldwide as of today, Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases may have just given markets a positive to start the week off on the front foot.

Fauci has said that a vaccine could be here as soon as November.

Key comments

"The way the pace of the enrolment is going on and the level of the infections that are going on in the United States, it is likely that we’ll get an answer by the end of the year.

"It is conceivable that we would get an answer before that.

"I would say a safe bet is at least knowing that you have a safe and effective vaccine by November, December,” he told the Times newspaper in the U.K. He declined to comment on what vaccine could be a front-runner, but added, “I would not be satisfied until a vaccine was proven to be safe and effective before it was actually approved for general use."

Market implications

The US stock market closed last week on a strong standing which should buoy the Asian session at the start of the week.

Additional hopes for a vaccine is positive as well which could the catalyst for a bid back into USD/JPY.

The Chart of the Week: Bears looking for shorts for favourable risk/reward territory

More on the US stock market here: S&P 500 Weekly Forecast: Best August since 1986, how will September start?

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

GBP/USD loses momentum, flirts with 1.3200

GBP/USD is struggling to maintain its positive bias on Thursday, retreating toward the 1.3200 region in response to the pick in the buying interest around the Greenback. That said, Cable remains under scrutiny as cautious market sentiment keeps investors focused on the US-Iran conflict and political effervescence in the UK.

EUR/USD trims gains, challenges 1.1400

EUR/USD now gives away part of its earlier advance, receding toward the 1.1400 contention zone on Thursday. Meanwhile, the pair’s recovery comes amid extra losses in the US Dollar, at the time when while investors continue to monitor developments in the Middle East and sentiment surrounding global technology stocks.

Gold remains bid and close to $4,100

Gold accelerates its recovery and approaches the key $4,000 mark per troy ounce at the end of the week, adding to Thursday’s advance. However, expectations for a hawkish Fed remain steady and keep the yellow metal’s potential upside contained.

Crypto Today: Bitcoin at $60,000, Ethereum at $1,500, and XRP at $1 face a make-or-break test

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are trading in the red on Friday after three consecutive days of losses, testing their respective make-or-break support levels.

Week ahead – NFP report to challenge Dollar strength and the hawkish Fed

Dollar strength dominates markets, as the hawkish Fed overshadows geopolitics and lower oil prices. NFP week could drive September Fed hike expectations and boost market volatility. The euro lacks fresh bullish catalysts, all eyes on the preliminary inflation report and the ECB Forum.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.