Market Sentiments on Major Currencies Shift with the Moderna COVID-19 Vaccine Trial

As the “promising” preliminary results for the COVID-19 vaccine trial on Monday from American Biotech Company Moderna Inc. went out, risk sentiments showed in major currencies. Safe havens, JPY and USD, became one of the weakest performing currencies. On the other hand, AUD and NZD increased in value.

As one would have envisioned, there was an expansive tone in the market perception in recent hours. The Dow Jones and S&P 500 closed and surged at +3.85% and +3.15%, respectively.

On Global Growth

The anticipation of the vaccine likely presented hopes for a sooner global recovery.

West Texas Intermediate (WTI) crude oil closed at its strongest in 2 months, in reference to what China presented as the demand levels before the pandemic hit.

In Wall Street, shares in energy were the strongest, followed by the industrial sector.

What Happens Next?

Asia Pacific exchanges may follow the upward direction of Wall Street. AUD and NZD will likely sustain its strengthening stance.

With the recent Reserve Bank of Australia (RBA) minutes released today as well, AUD/USD is in for some developments. However, it is unlikely to be majorly impacted after its relatively modest reaction to the rate declaration this month.

Furthermore, Yen may continue to struggle to keep up moving forward.

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