Washington Post report
This was rumored but now it’s confirmed
in the Washington Post — the US FDA has given full approval to Pfizer’s covid vaccine.
The newspaper cited two individuals with direct knowledge.
This approval was only a matter of time. The vaccine previously had emergency use authorization but its safety track record was well known.
The full authorization gives cover to companies and organizations to mandate vaccines for employees or attendees of events. This was the fastest vaccine approval in the FDA’s history.
The hope is that this causes a bump in vaccines. The delta pandemic is already causing some uptick, with 1 million doses administered per day late last week, with about half of those receiving the first dose.
“Based on the longer-term follow-up data that we submitted, today’s approval for those aged 16 and over affirms the efficacy and safety profile of our vaccine at a time when it is urgently needed,” Pfizer chief executive Albert Bourla said in a statement. “I am hopeful this approval will help increase confidence in our vaccine.”
This report has helped to lift sentiment further but I worry about some selling-the-fact here as this was rumored/reported on the weekend.
Update: The approval is now confirmed.
Comments after leaving rates at 0.10%
Israel is an interesting place to watch at the moment because after its early vaccine success, it’s suffering from near-record daily covid cases and delta hits hard.
The central bank said the increase in morbidity has led to a tightening of public health limitations and adds some economic uncertainty in the short and medium term. They note that a third round of vaccinations could reverse some of that.
More broadly, they say the process of recovery is continuing but there are still challenges to activity in the view of increased health risks domestically and abroad. They say they will keep a very accommodative monetary policy for a prolonged time.
Could this be a preview of what Powell will say on Friday?
Held resistance against the 61.8% retracement/ahead of the high from last week
The USDJPY has seen a move higher today help by better risk on sentiment.
Recall from Friday, the price came down and tested its 100 hour moving average (lower blue line) and found support buyers. Today in the early Asian session, the price retested that moving average line and found buyers once again. That set traders up for a move higher.
When the price started to extend and stay above the 200 hour moving average (green line), buyers made another push to the upside that saw a swing area between 110.02 and 110.06 and a test of the 61.8% retracement of the move down from the August 11 high at 110.149.
Last week, the price did extend above that retracement level but could not sustain momentum.
We are seeing a rotation back down toward the 110.00 level (and near the lower end of the swing area – see red numbered circles). In the short term if that area can hold support, the buyers remain in control. We should see a retest and potential break toward the high from last week at 110.222.
Move below the 110.00 level and the rising trendline near 109.91 and the 200 hour moving average at 109.865 would be the next targets. Will below the 200 hour moving average and the buyers will be disappointed with the move, and tilt back to the upside today.
Bundesbank remarks in its latest monthly report
- Growth could undershoot projections this year
- Early weeks of the rebound were more timid than projected
- That will likely weigh on full-year figure growth as well
- Some restrictions could be introduced in autumn if infections continue to rise
- But unlikely to be as strict as in the past given vaccine progress
That pretty much sums up the view on the German and European economy at the moment, as overall growth momentum also looks to have peaked in early summer. The good news is that vaccinations have progressed well and that should keep some of the momentum flowing into Q4, though delta variant risks are something to keep an eye out for.
The greenback falls to fresh lows on the day in European trading
Of note, commodity currencies are capitalising on the sentiment to start the new week as the market stays focused on the fact that the Jackson Hole symposium isn’t likely to bring any changes to the Fed’s taper narrative.
USD/CAD is meeting fresh lows at 1.2735 currently, nearing a test of its 100-hour moving average (red line) at 1.2730. That will be a key level to watch as a break below will shift the near-term bias to being more neutral and discard some of last week’s momentum.
Elsewhere, AUD/USD is up 0.6% to near 0.7180 while NZD/USD is up 0.5% to 0.6860 despite New Zealand announcing a lockdown extension until 27 August.
The dollar is also seen lower against the euro and pound, though keeping higher against the yen as USD/JPY is up to 110.00 as 10-year Treasury yields climb up 2 bps to 1.28% amid a retreat in safety bets from last week.
In the equities space, European indices are holding decent gains while US futures are still up around 0.3%, so that’s a modest showing so far on the session for risk.
Analysts at Nordea say that the oil price land-slide of 2013/2014 risks being repeated if the Fed enters an aggressive tapering process into an already slowing economy
But, add that the slide will not be anytime soon, posting this chart of the 13/14 move taking a good while to play out:
Some weekend crypto news – PayPal will allow customers in the UK to buy, sell and hold bitcoin and other cryptocurrencies
This follows PayPal launching cryptocurrency buying and selling in the United States earlier in 2021.