A Reuters piece from earlier is taking up some of the news wires in financial markets as the implications are certainly a potential blow for risk appetite.
The article explained that a laboratory study suggests that the South African variant of the coronavirus may reduce antibody protection from the Pfizer Inc/BioNTech SE vaccine by two-thirds.
The news explained that it is not clear if the shot will be effective against the mutation.
”Moderna also said the actual efficacy of its vaccine against the South African variant is yet to be determined. The company has previously said it believes the vaccine will work against the variant.”
The article was published a few hours ago but is only just starting to rank on social media, so it may have limited impact in forex if it has already been priced in.
Market implications
Nevertheless, the risky high beta currencies, such as AUD will be vulnerable to such sentiment creeping back through in a market place that is heavily reliant on a successful vaccine rollout.
Road bumps, such as this, along the way, could see significant risk-off reactions.
The SA strain, which may spread faster, was already the dominant virus variant in the Eastern and Western Cape provinces of South Africa and at least 20 other countries including Austria, US, UK, Norway and Japan, have also found cases.
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