The chief of the U.S. Food and Drug Administration is prepared to bypass the full federal approval process in order to make a Covid-19 vaccine available as soon as possible, according to an interview in The Financial Times. Insisting that the move would not be due to pressure from the Trump administration to fast track a vaccine, FDA Commissioner Stephen Hahn told the publication that an emergency authorization could be appropriate before phase three clinical trials are completed if the benefits outweigh the risks. “It is up to the [vaccine developer] to apply for authorization or approval, and we make an … (full story)

On Friday, the Japanese Yen significantly strengthened against the dollar after the news that Abe, Japan’s longest serving prime minister, would step down due to worsening health. Concerns about a possible shift away from Abe’s expansionary economic policy, known as Abenomics, drove the move in the safe-haven currency, investors said. The strength in the Japanese Yen may have been attributed to a little uncertainty since Abenomics has been one of the more influential economic strategies, but the dollar also resumed its slide against a basket of major currencies in the wake of Fed Chair Jerome Powell’s remarks … (full story)

How much longer until there’s a safe, effective vaccine? Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, said this weekend: “The way the pace of the enrollment is going on and the level of the infections that are going on in the United States, it is likely that we’ll get an answer by the end of the year.” He added: “It is conceivable that we would get an answer before that.” “I would say a safe bet is at least knowing that you have a safe and effective vaccine by November, December,” he told the Times newspaper in the U.K. He declined to comment on what … (full story)

EURUSD bulls are still in charge as of last week’s close. As I mentioned to DPA members last week, I managed to get out of my EURUSD long from July 7th for a 500+ pip gain. I also shorted the EURUSD on the 19th and made just over 60 pips, and went long again following the August 24th session. I announced all of these entries to DPA members. For the week ahead, 1.1930 is resistance with a close above that opening the door to 1.2090. What happens near 1.1930 will dictate whether I add to my long position. Key support for the week ahead comes in at 1.1700. GBPUSD Technicals GBPUSD broke free from its consolidation … (full story)

Personal income increased $70.5 billion (0.4 percent) in July according to estimates released today by the Bureau of Economic Analysis (tables 3 and 5). Disposable personal income (DPI) increased $39.9 billion (0.2 percent) and personal consumption expenditures (PCE) increased $267.6 billion (1.9 percent). Real DPI decreased 0.1 percent in July and Real PCE increased 1.6 percent (tables 5 and 7). The PCE price index increased 0.3 percent. Excluding food and energy, the PCE price index increased 0.3 percent.The increase in personal income in July was more than accounted for by compensation of employees as portions of … (full story)

The Federal Reserve’s new policy of inflation “averaging “ is a mistake. The trade-off nowadays is between inflation and financial stability. Buying more inflation will eventually create, if it has not already, financial imbalances that will trigger an economic crash. The parallel to this is the misguided policies of the 1970s. Back then policymakers found buying more employment with a little more inflation did not work. Facts Don’t Support Policy Change Federal Reserve policymaker’s argument for the policy change is that consumer inflation has been consistently running below its 2% target. Also, sustained … (full story)