• The UK reported 38,598 new coronavirus cases on Sunday, the lowest since December 27.
  • Norway will investigate 23 deaths in frail elderly patients after vaccination.

As scientists identify more and more potentially worrying variants of the coronavirus SARS-CoV-2, US President-elect Joseph R. Biden, Jr. announced his incoming administration’s proposal for a $1.9 trillion COVID-19 rescue plan last week.

The programme is including $20 billion to mount a national vaccination program.

The plan is taking some of the stings out of the markets due to the spread of the new variant virus.

At the same time, despite a previously stated strategy of holding back some vaccine doses to ensure people can get their second shot, the Trump Administration started releasing its reserve doses in December 2020, the Washington Post reported.

However, this means that the previous stockpile no longer exists—dashing the hopes of US state and local officials for a quick increase in the available vaccine supply.

That being said, vaccines have reached consumers in record time due to the US Food and Drug Administration granting emergency authorization to vaccines made by Pfizer and Moderna in less than a year. 

Several efforts are underway to help produce and distribute the vaccines more quickly.

More than 60 vaccines are still going through a three-stage clinical trial process and the US government’s Operation Warp Speed initiative has pledged $10 billion in an effort to develop and deliver 300 million doses of a safe, effective coronavirus vaccine this month.

The World Health Organization is coordinating global efforts to develop the vaccines, aiming for two billion doses by the end of 2021.

While there have been some weekend reports of scepticism and even fatalities whereby Norway will investigate 23 deaths in frail elderly patients after vaccination, a CDC report last week revealed that severe reactions to the Pfizer-BioNTech COVID-19 vaccine are rare.

These reassurances of safety as efforts for wide-spread vaccination continue to ramp up are crucial in restoring a commitment to the objective of herd immunity. 

Meanwhile, in the UK, where the variant first originated, the next phase of its COVID-19 vaccination programme will be released on Monday.

Covid-19 deaths have been at the highest they’ve ever been — and the more infectious variants could make things much worse.

However, the UK reported 38,598 new coronavirus cases on Sunday, which is the lowest since December 27.

The nation will start offering doses to people aged 70 and above and those who are considered clinically extremely vulnerable to the coronavirus.

"Today is a significant milestone in our vaccination programme as we open it up to millions more people who are most at risk from COVID-19," British Prime Minister Boris Johnson said on Sunday.

"We have a long way to go and there will doubtless be challenges ahead - but by working together we are making huge progress in our fight against this virus."

Health minister Matt Hancock said more than half of all over-80s had now had a vaccination.

Britain - which has Europe's highest COVID-19 death toll - hopes progress with rolling out the vaccines will enable it to ease some of the economically damaging lockdown restrictions in March, foreign minister Dominic Raab said. 

Johnson has set a target of vaccinating the four most at-risk categories - encompassing roughly 14 million people - by the middle of February.

Market implications 

Stock and oil prices fell on Friday, pressured by intensifying lockdowns while the safe-haven US dollar index posted its largest weekly gain in more than two months.

However, US bond yields and stocks have been in the rise recently, partly on expectations about the rollout of coronavirus vaccines and on a massive stimulus plan by the incoming Democratic administration.

Given that there has been a drop in new cases as the UK has reported this week, to the lowest since December 27, perhaps the variant is not as transmissible as first feared.

This should be a positive for risk sentiment this week. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content

Recommended content

Editors’ Picks

AUD/USD struggling to retain the 0.6900 mark

AUD/USD struggling to retain the 0.6900 mark

Wall Street plunged on Tuesday, dragging AUD/USD lower as the greenback benefited from the risk-averse sentiment. Softening gold prices weighed further on the aussie, now approaching its June lows. Australian Retail Sales in the docket.


EUR/USD nears 1.0500 amid inflation and recession concerns

EUR/USD nears 1.0500 amid inflation and recession concerns

The EUR/USD pair bounced modestly from a Tuesday’s low of 1.0502, maintaining a near-term bearish bias amid concerns related to economic growth and central banks’ actions to tame inflation. US core PCE inflation and German CPI coming up next.


Gold: Can the dollar finally win the battle?

Gold: Can the dollar finally win the battle?

XAUUSD is technically bearish and could soon lose the $1,800 level. Gold retains the sour tone on Tuesday, now trading at around $1,823.00 a troy ounce. The dollar seesawed between gains and losses, turning higher after the release of discouraging US data.

Gold News

Summertime bull-run a multi-year bear market?

Summertime bull-run a multi-year bear market?

The cryptocurrency market is in a historical pivotal moment. One good trade could replenish all losses, while one bad trade could be catastrophic.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!