USD Calms after Pfizer Vaccine News’ Selloff

The dollar steadied in early European trade Tuesday, as the euphoria surrounding Pfizer vaccine news quieted, and the markets yet again took a look at the bigger picture of current COVID-19 effects. 

The news from Pfizer and BioNTech, suggesting their vaccine is “90% effective in preventing Covid-19”, announced yesterday, had traders worldwide abandoning safe-havens in favour of riskier assets as the first step to global economic recovery seemed to finally have been taken. 

Today, however, rationality has finally returned.

“None of this unfortunately changes the near-term fact that the global economy faces a challenging winter. There are also still some important questions surrounding the vaccines that will be key to the economic outlook. How effective will the vaccine prove when rolled out to the wider population? What share of the population will be vaccinated? And how long will it take to roll-out - particularly given complexities in transporting/storing some of the vaccines at the necessary sub-zero temperatures, but also because it will likely require two shots.” analysts at ING comment.

Indeed, data showed that over 59,000 Covid-19 patients were in hospitals across the US on Monday - the country's highest number ever of in-patients being treated for the disease. New infections, in turn, remained above 100,000 for the sixth day in a row.

Additionally, Donald Trump’s lack of desire to accept presidential defeat continues to lay heavy on the markets. He is in full right to look into “irregularities” of the election, Senate Majority Leader Mitch McConnell says. 

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