- Rises in the USD / JPY regain control as the mood of risk picks up again.
- Hopes for vaccines are dwindling, the Fed recalls the risks, and trade wars cast a dark shadow forever.
The USD / JPY is advancing with the strengthening of the US dollar in all areas. As of this writing, the USD / JPY is trading at 107.91 after climbing from 107.63 to 107.93. The pair is up 0.2% on the session, as Asian stocks collapsed after a bad close on Wall Street.
American references withdrew from a late Stat News report that threw cold water on an optimistic study that had been published by Moderna on its candidate vaccine against the coronavirus. American stocks skidded sharply in the latter part of the US session and turned negative at the close: Wall Street Close: So much for the optimism of the COVID-19 vaccine.
The bullish start to the week has been wiped out, almost in its entirety, where otherwise, a promising phase 1 study led by the National Institute of Allergies and Infectious Diseases kept morale high. Moderna said it expects to start a phase III trial in July. However, the experimental nature of the test was quick to provide the critical data needed to assess its effectiveness, according to Tuesday’s health-focused Stat News report, citing experts. Therefore, the cross encountered offers before the handle 71.
Problems identified by Stat include:
– a lack of data on the drug responses of the other participants in the study of 45 subjects
– the lack of information on the age of the eight subjects whose antibodies were analyzed, an important question given that the virus is particularly fatal for the elderly
– no comments from the United States from Moderna, government partner in the vaccine, the National Institute of Allergy and Infectious Disease
– the data are based on early responses to the vaccine, which does not allow us to know how long an immunity produced by the vaccine could last.
Moderna did not immediately respond to a request for comment from Reuters. The share price took a hit and fell 10.4% on Tuesday night to almost reduce a 13% increase on Monday, which closed it at an all-time high.
And in other risky news …
Meanwhile, the four-page letter from US President Donald Trump calling on the WHO to change its procedures within 30 days or risk cutting US funding also sapped sentiment. In addition, trade wars are never far from the front pages of the news. There is also the rumor that China plans to target exports of wine, dairy and seafood from Australia in what has been described as economic retaliation for Australia’s call for an investigation into the origin of COVID-19.
Fed President Jerome Powell, who appeared in Congress, told the Senate Banking Committee that the magnitude and speed of the recession “is unprecedented in modern times and far worse than any recession since World War II” .
USD / JPY levels