A second biotech company, Moderna, has announced preliminary data with an effectiveness of 94%, this is greater than Pfizer’s 905 effectiveness. With two companies having a greater than 90% effectiveness, former FDA Commissioner Dr. Scott Gottlieb has gone on record stating that the pandemic could be essentially be eradicated by the end of next year. Equities have responded positively, with those in the service and travel industries moving the most. Investors believe that the global economy will start to move on track a lot sooner and life may start have a new “new normal”. The Dow Jones Industrial Average is ready to pierce the 30,000 level, up nearly 57% from its lows in April of this year.
The Canadian dollar is stronger to most major currencies as commodity prices move higher, oil itself is up 3% over that important level of $40 USD a barrel, currently $41.31.
The USDCAD will likely stay below the 1.3100 level in the near term, if another biotech comes out with positive results, then equities could move to even newer highs and the USDCAD could go below 1.3000.