Risk-off returns as Moderna CEO makes glum prediction
Matt Simpson November 30, 2021 6:42 AM
An article in the Financial Times triggered a fresh round of selling before the European open, as Moderna’s CEO predicts vaccines will be less effective.
Stéphane Bancel, CEO of Moderna said that the current crop of vaccines will struggle to tackle the Omicron variant due to the high number of mutations on the spike protein. Whilst he admits we still need to wait for the data he also added that all of the scientists he has spoken with have agreed that “this is not going to be good”.
It has been noted that he said similar comments live on CNBC yesterday, but markets have clearly taken them much more seriously from the Financial Times. It could simply be bots reacting to headlines, or favouring one news outlet over another. Make of that what you will.
Investors have flocked to the Japanese yen, Swiss franc, gold and bonds as classic risk-off plays ensue. US futures are now down around -1.4% with the S&P 500 E-mini futures erasing all of yesterday’s gains within an hour. We still need to see how European traders react but, if the recent pattern of bearish moves beginning in Asia persists, it might not be a pretty session for the bull camp.
WTI filled the liquidity gap up to $73 highlighted yesterday before topping out. After meandering around $70 bearish momentum has now returned in line with its dominant trend which suggest the swing high is in place at around $73. Next major support is around $64, but we need to see prices break Friday’s low to confirm trend continuation.
AUD/JPY – the classic barometer of risk – has resumed its downtrend on the four-hour chart. After finding resistance around the monthly pivot point, prices have broken out of compression to the downside. Our bias remains bearish below 81.40, although 80 may provide interim support ahead of the monthly S1 pivot. But if this is a true risk-off move then it should make light work of such levels.
How to trade with FOREX.com
Follow these easy steps to start trading with FOREX.com today:
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.