WIth the news of a breakthrough in a vaccine against Covid-19, what is the outlook for risk assets?
Here is their view, courtesy of eFXdata:
MUFG Research discusses the impact of the vaccine news on the FX market and sees a scope for further gains in risky assets.
“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 crisis and provides a reminder not to bet against human ingenuity,” MUFG notes.
“It supports our baseline assumption behind our FX Outlook that effective vaccines will be implemented next year. Further positive progress on vaccines will allow currencies which have been hit hard by the COVID crisis to continue to rebound,” MUFG adds.
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