A much needed boost

Today’s news headlines:

‘Moderna’s Covid jab shows 94.5% efficacy in clinical trials’. The world got another boost yesterday, as it emerged that Moderna’s Covid-19 vaccine had more than 94.5% efficacy in clinical trials, after news of a successful Pfizer trial last week. Moderna’s vaccine is expected to prove more robust than Pfizer’s, lasting longer at less challenging temperatures. The UK said that it has secured the purchase of 5 million doses of the Moderna vaccine, in addition to 40 million ordered of the Pfizer vaccine. (Financial Times)

‘Fed’s Clarida has more confidence vaccines will support recovery'. The Vice Chair of the Federal Reserve, Richard Clarida, has commented that the prospects for economic recovery are improving as progress is made in the development of Covid-19 vaccines. Clarida’s baseline forecast for 2021 growth included an expectation for a vaccine and after recent news he is more confident in the recovery. Clarida also commented that pent-up household savings would help the US to make a more rapid recovery than it did from the Global Financial Crisis. (Bloomberg)

Today's events, rates, and data 

  • The US Dollar traded mostly flat overnight and into this morning, as investors weighed positivity over a vaccine against the potential for new coronavirus restrictions in the US. Sterling rose on a report from The Sun newspaper that Britain’s top Brexit negotiator has told Boris Johnson to expect a trade deal with the EU.

Today's events

US Retail Sales & Core Retail Sales: 1.30pm
BoE Gov Bailey Speaks: 2.00pm
US Industrial Production: 2.15pm
Fed Chair Powell Speaks: 6.00pm
RBA Gov Lowe Speaks: 10.00pm

Interbank rates:

GBP/USD: 1.3195
GBP/EUR: 1.1135
EUR/USD: 1.1850
USD/CAD: 1.3085

The markets are moving. To speak to our team, please call +44 (0)20 3465 8200.