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EUR/USD Tanks Slightly On Tuesday Morning After Report Casts Doubt On Moderna’s Coronavirus Vaccine

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  • STAT questions Moderna’s hyped COVID-19 vaccine.
  • S dollar rallies on STAT’s report
  • S dollar safe haven status still stong.

The EUR/USD was off to a slight decline on Wednesday morning as the Asian markets opened mainly due to a recent report published by the STAT medical news website. The report questioned the hyped coronavirus vaccine from Moderna, which previously gave rise to positive investor expectations. Moderna claimed on Monday that the developmental coronavirus vaccine trials which involved 45 patients yielded significant immune response in all the patients during the phase 1 trial. STAT’s report claims that the biopharma data was insufficient to support the vaccine’s efficacy.

The slight decline in the EUR/USD exchange rate due to the STAT report is not expected to do much damage. The currency pair’s exchange rate remains largely bullish, with the price expected to rally above $1.0961. Strong resistance is expected at the $1.0981, $1.0991, $1.1015, and $1.1049 price levels.

EUR/USD outlook

The STAT report may have caused significant doubt on the Moderna vaccine claims judging by the dollar’s slight gains on Wednesday morning. The doubting report may have influenced investors to switch back to the U.S dollar as a safe haven currency.

The U.S dollar’s performance against the Euro was subdued by the recent reports of a proposed Euro stimulus package worth 500 billion Euros, to be used to aid the regions affected the most by COVID-19. This allowed the Euro to gain some ground against the dollar. Meanwhile, the U.S dollar index was also taking a hit due to the ongoing trade tensions with China. Nevertheless, the EUR/USD outlook remains bullish.

The U.S dollar experienced some gains against the Chinese Yuan. The USD/CNY traded at 7.1051 after 0.10% after the Chinese central bank revealed that it had no plans to adjust its loan prime rates. This announcement aligned with investor expectations. It also means that the 5-year loan prime rate will hold steady at 4.65%, while the 1-year loan prime rate will also remain unchanged at 3.85%.

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