Receding Omicron fears assisted GBP/USD to gain some positive traction on Monday.
A goodish pickup in the USD demand kept a lid on any meaningful gains for the major.
The year-end thin liquidity conditions warrant caution before placing directional bets.
A goodish pickup in the USD demand kept a lid on any meaningful gains for the major.
The year-end thin liquidity conditions warrant caution before placing directional bets.
Comment:
GBP/USD hit its highest levels in over a month on Tuesday above 1.3450, despite UK Boxing Day market closures.
The pair has been lifted in recent sessions as traders price out the most bearish UK Omicron lockdown scenarios.
🏃🏻♀️🏃🏻♀️🏃🏻♀️🏃🏻♀️
The pair has been lifted in recent sessions as traders price out the most bearish UK Omicron lockdown scenarios.
🏃🏻♀️🏃🏻♀️🏃🏻♀️🏃🏻♀️
Comment:
GBP/USD seesaws in a choppy range after stepping back from the monthly top.
UK, France reports record daily infections, US marks 55% average daily jump in cases in the last one week.
EU’s Šefčovič terms UK’s threats to trigger Article 16 as "enormously disruptive", EU-UK agreed to overfishing quota for 2022.
Light calendar, year-end holiday mood to restrict moves, risk catalysts are the key.
UK, France reports record daily infections, US marks 55% average daily jump in cases in the last one week.
EU’s Šefčovič terms UK’s threats to trigger Article 16 as "enormously disruptive", EU-UK agreed to overfishing quota for 2022.
Light calendar, year-end holiday mood to restrict moves, risk catalysts are the key.
The BoE hiked interest rates in December by 15 basis points to 0.25%, despite the ongoing surge in new Covid-19 cases. Many in the market had pushed back this rate hike until the next meeting in February 2022 on fears that the UK government may introduce harsh lockdown measures at a time when the UK economy is finally pulling out of the pandemic crisis of the last two years. The announcement of a new, virulent Covid-19 variant, Omicron in late November took the market by surprise and dampened any prevailing rate hike expectations. However, it seems like the BoE has chosen to look through these fears and have chosen to concentrate on official UK labour and inflation data instead.
UK headline inflation is now running at 5.1% on an annualized basis, the highest level since September 2011, according to the November Office for National Statistics report, as the cost of goods in the inflation basket surge.