The race to find the covid vaccine shows a significant promise. Moderna Inc. said that their Covid vaccine was 94.5% effective in the phase three trial, including in preventing the most serious Covid infections. They announced it yesterday, just a week after Pfizer Inc. and BioNTech SE were found to be more than 90% effective in the same late-stage testing.
Moderna also claimed that its vaccine does not require ultra-cold storage, unlike the product announced by Pfizer that needs to be kept at temperatures of -70 degrees Celsius or below. Most pharmacies and hospitals do not have freezers that go that low. Moderna’s vaccine can be kept at -20 degrees Celsius in a readily available freezer. It answers the doubt of logistical challenges in distributing vaccines globally. The company further noted it already has millions of doses ready to distribute as soon as the vaccine is approved by the regulator.
In the markets
In response to this breakthrough, US Stocks rallied on Monday. The S&P 500 rose 1.2 percent yesterday in addition to a more than 10% increase in November as the highest record in its history. Asian stock had already been higher before Moderna’s release after the Regional Comprehensive Economic Partnership (RCEP) agreement yesterday.
This vaccine optimism could cause gold to lose interest as a safe-haven in this pandemic time, and consequently strengthen USD. Therefore, today’s signal would short on Gold, EURUSD, and GBPUSD, and long on USDCAD.
Trading Signals for today: