Moderna Chief Bancel predicts existing vaccines will struggle with Omicron – FT

Anil Panchal FXStreet

Market sentiment sours after the Financial Times (FT) shares comments from Moderna’s Chief Executive Stéphane Bancel suggesting further hardships the South African variant of the coronavirus, dubbed as Omicron.

Key quotes

The chief executive of Moderna has predicted that existing vaccines will be much less effective at tackling Omicron than earlier strains of Covid-19 and warned it would take months before pharmaceutical companies can manufacture new variant-specific jabs at scale.

The high number of Omicron mutations on the spike protein, which the virus uses to infect human cells, and the rapid spread of the variant in South Africa, suggested the current crop of vaccines may need to be modified next year.

There is no world, I think, where [the effectiveness] is the same level . . . we had with Delta.

I think it’s going to be a material drop. I just don’t know how much because we need to wait for the data. But all the scientists I’ve talked to . . . are like ‘this is not going to be good’

FX implications

Following that news, yields refresh intraday low and the AUD/USD drops further towards 0.7100. The same underpins the US dollar’s safe-haven demand and weighs on the EUR/USD prices.

Read: EUR/USD teases 1.1300 as yields weigh on USD, Eurozone inflation, Fed’s Powell eyed

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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