Sentiment positive again after Moderna’s vaccine news

Indices futures rose sharply, and both the U.S. dollar and the Japanese yen plunged following some positive vaccine news on late Tuesday. 

U.S. biotech firm Moderna’s experimental Covid-19 vaccine was declared safe. It generated “robust” immune responses in all 45 volunteers taking part in the study, according to early-stage human trial results published in the New England Journal of Medicine on Tuesday.

U.S. equity futures will probably close the bullish gap and also sell on the news later in the day. It will be an essential indicator if bulls defend today’s gains or not. 

Later in the day, the Canadian central bank is expected to leave rates unchanged, and the primary refinancing rate should stay at 0.25%. However, the following presser and forward guidance will be the most important for traders. The USDCAD pair has been stuck in a narrow trading range at around 1.36, and today’s BoC decision might change that. 

From other news, oil prices pushed higher Wednesday, helped by a sharp fall in U.S. crude inventories of 8.3 million barrels in the week to July 10, according to data from industry group the American Petroleum Institute.