White House warns Pfizer Covid-19 pill will not be widely available for months – FT

Anil Panchal FXStreet

The White House dims optimism over the Omicron cure after the US Food and Drug Administration (FDA) approved a pill from Pfizer to treat Covid-19.

“The White House has warned it will take more than six months to fulfill its initial order for Pfizer’s antiviral Covid-19 pill, as officials damped speculation the drug could immediately turn the tables on the pandemic,” said the Financial Times (FT)

Key quotes (from FT)

The US drugs regulator on Wednesday gave emergency authorization for the pill, called Paxlovid, to be used on people aged 12 and over with mild or moderate Covid-19 who are at risk of more severe symptoms.

But senior health advisers to President Joe Biden quickly warned that it would take months for the company to make and distribute all 10m treatment courses already on order.

Pfizer has said its pill cuts the risk of hospitalisation or death in Covid-19 patients by 89 percent.

It is likely to be especially important in the coming months because early lab tests show it continues to work against the fast-spreading Omicron variant, unlike some of the monoclonal antibody treatments already available.

FX reaction

Given the latest risk-on mood mainly driven by hopes of overcoming the South African covid variant, dubbed as Omicron, the news negatively affects the sentiment and should weigh on the recent gainers, namely Antipodeans and commodities.

Read: AUD/USD: Well-set for 0.7300 on firmer sentiment, US Durable Goods Orders, PCE Inflation 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.

AUD/USD softens as risk-off mood meets FOMC countdown

The Aussie Dollar loses 0.11% against the Greenback on Tuesday as risk appetite remains negative amid calls from AI company CEOs to slow development, while the FOMC monetary policy meeting looms. Expectations for a Fed rate hike undermine the AUD/USD, which trades at 0.7130.

USD/JPY extends gains toward 155.00 amid USD resurgence

USD/JPY keeps pushing higher toward 155.00 early Tuesday, looking for more upside, as traders await the FOMC and BoJ meetings this week. Meanwhile, Fed rate-hike bets and oil-driven inflation risks keep US bond yields near multi-year highs, supporting the US Dollar and the pair. That said, a more hawkish repricing of the BoJ normalization path might continue to underpin the Japanese Yen and could limit USD/JPY's upside. .

Gold set to fall toward $4,000 as Warsh faces a Fed rate-hike dilemma

As the Federal Reserve monetary policy announcement approaches and the Middle East war intensifies, the US Dollar resumes its advance. Gold price posted a tepid attempt to recover its shine in early August, but with renewed USD demand, the bright metal faltered miserably and is now closer to the $4,000 mark than the encouraging $4,700 peak from a month ago.

Ethereum continues to attract capital despite impending rate hike and Clarity Act failure

Ethereum declined to $2,400 on Tuesday after the Clarity Act failed to progress in the Senate. Despite that and the market's near certainty of an interest rate hike at the next Federal Reserve (Fed) meeting, the top altcoin has continued to attract fresh capital. Ethereum buyers have been dominating sellers over the past few days.

How Japan became the World's Banker and why that era may be ending

Japan's ultra-low interest rates helped finance trillions of dollars in global investments for more than a decade, making the Japanese Yen one of the world’s cheapest sources of funding. With the Bank of Japan expected to tighten policy again this week, that advantage may be entering a new phase. While most major economies raised interest rates, Japan remained the world's outlier.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.