A new hope

Today’s news headlines:

‘Moderna vaccine produces antibodies in early trial’. A potential Covid-19 vaccine has produced immune responses in all 45 test subjects on the phase one trial run by the National Institutes of Health. The findings support further development of the vaccine, which ‘transcribes some of the virus’s genetic code into human cells to teach the immune system to detect the invader’. After 57 days, participants had on average more antibodies than a group of recovered patients that had experienced mild to moderate symptoms. (Financial Times)

‘Tax rises of £60bn needed to stabilise finances, says watchdog’. The Office for Budget Responsibility has called for tax increases of £60bn or a return to austerity in order to stabilise the UK’s public finances after the coronavirus. They described the current path of long-term public finances as unsustainable after predicting that government borrowing will reach £370bn this year. (Financial Times)

Today's events, rates, and data 

• Along with Asian equities overnight, US and European stock futures both rose in response to rising optimism over the potential development of a virus defence. The Yen was steady after the Bank of Japan was unmoved on monetary stimulus. The Dollar, treasuries, and gold all slipped following improved risk sentiment. 

Today's events

UK CPI: 0.6% vs 0.5% previously
UK Core CPI: 1.4% vs 1.2% previously
MPC Member Tenreyro Speaks: 9.00am
US Industrial Production: 2.15pm
Bank of Canada Monetary Policy Report: 3.00pm
Bank of Canada rate statement: 3.00pm
Bank of Canada Overnight Rate: 3.00pm
US Crude Oil Inventories: 3.30pm
Bank of Canada press conference: 4.00pm

Interbank rates:

GBP/USD: 1.2600
GBP/EUR: 1.1045
EUR/USD: 1.1410
USD/CAD: 1.3595