Risk appetite increases after vaccine news

Tuesday has brought renewed optimism that all will be well, and investors bought equities, while JPY crosses and commodity-linked currencies were bid too.

On Monday, data showed that the vaccine being developed by British drugmaker AstraZeneca along with Oxford University, induced an immune response in all study participants who received two doses without any worrisome side effects. Equity markets rose after this news.

Additionally, a coronavirus vaccine under development by CanSinoBiologics Inc and China’s military research unit, likewise showed that it appears to be safe and induced an immune response in most of the 508 healthy volunteers who got one dose of the vaccine, researchers reported.

From other news, the EU leaders seem to have reached an agreement regarding the new coronavirus relief fund, which should be positive for the Euro and the EU stocks.

In commodities, silver surged above 20 USD, suggesting investors are still afraid of the USD debasement. However, silver is also an industrial metal, which points to hopes of a speedy recovery and more demand. 

Later in the day, Canadian retail sales are due, which will influence the Loonie.