Coronavirus: Further positive vaccine headlines to reinforce risk asset rally – MUFG

FXStreet reports that potential end comes into sight for COVID-19 crisis but a difficult winter still lies ahead, per MUFG Bank.

“The announcement from Pfizer that their COVID-19 vaccine is proving very effective at combating the disease has reinforced the rebound in risk assets following the US election.”

“While the vaccine results from Pfizer are only preliminary at this stage, they were described as ‘just extraordinary’ by Anthony Fauci the director of the National Institute of Allergy and Infectious Diseases as Pfizer’s preliminary results showed an effectiveness of more than 90%. The positive developments have increased the likelihood of a return to normality next year which should help to accelerate the global economic recovery.”

“Admittedly, there are still many uncertainties at this stage. According to vaccine experts, questions about production, distribution and, most importantly, the performance and capability of the shot itself still need to be answered including how long will it provide protection for and is it as effective for all age ranges. Nevertheless, it is still an important step forward to exit the COVID-19 crisis and provides a reminder not to bet against human ingenuity.