Global stocks jump as Moderna releases positive vaccine results
Global stocks rose today as traders remained optimistic about a coronavirus vaccine. In a statement, Moderna said that its vaccine produced a robust immune response to 45 patients in its early trials. All the patients given the vaccine produced neutralizing antibodies, which is an important thing in building immunity to the disease. Most analysts believe that a vaccine will help build momentum in the stock market. Indeed, airlines and hospitality groups were among the best-performing stocks today. Meanwhile, stocks also rose after Goldman Sachs released upbeat second quarter earnings. Its revenue rose to $13.3 billion, which was higher than the estimated $9 billion. Its EPS of $6.26 was better than the expected $3.78.
The British pound rose sharply against the US dollar as traders reacted to upbeat inflation data from the UK. Data released by the Office of National Statistics (ONS) showed that the headline CPI rose to 0.6% in June from the previous 0.5%. On a MoM basis, the CPI rose to 0.1% from 0.0%. This growth was fuelled by a jump in clothing and recreational services, which were among the most affected in the past few months. The so-called core CPI, which exclude volatile food and energy products rose to 1.4% from the previous 1.2%. The strength of the pound is also because of the overall weaker dollar. The greenback declined by 0.40%.
The Canadian dollar strengthened against the USD ahead of the BOC interest rate decision. Analysts polled by Reuters expect the bank to leave interest rate unchanged. Also, they expect more actions from the new BOC governor about quantitative easing. The loonie also rose because of the rising crude oil prices as OPEC+ leaders meet to deliberate on supplies. Meanwhile, data from Statistics Canada showed that manufacturing sales rose by 10.7% after falling by 28.5% in the previous month.
The EUR/USD pair rose to its highest level since June 3. The pair is trading at 1.1440, which is above the short- and longer-term moving averages on the daily chart. The RSI has also moved to 67, 3 points below the overbought level of 70. Most importantly, the price has moved below the important resistance level of 1.1420. Therefore, the pair is likely to continue rising, with the next target being at 1.1500.
The GBP/USD pair rose to an intraday high of 1.2632, which is the highest it has been since Friday. On the four-hour chart, the price is along the 23.6% Fibonacci retracement level. It is also above the 50-day and 100-day EMAs. The fast and slow lanes of the Stochastic oscillators have moved to the overbought levels. Therefore, the pair may continue rallying as bull's eye the next support at 1.2700.
The USD/CAD declined to an intraday low of 1.3565, which is lower than last week’s high of 1.3648. On the four-hour chart, the price is below the descending trend line shown in white. It is also along the lower line of the Bollinger Bands while the RSI is in a downward trend. The price is also slightly below the short and medium-term moving averages. Therefore, the pair is likely to continue falling with the next target at 1.3600.