Pound (GBP) Gains on Positive Omicron Research
The Pound (GBP) strengthened through yesterday’s session following upbeat data on the Omicron variant.
Two UK studies published Wednesday night show that people with Omicron are 40-66% less likely to be seriously ill than those who are infected with the Delta variant.
Omicron is likely to continue driving movement in the Pound today. Yesterday’s Covid figures hit record highs, but another study last night supports the idea that Omicron is less severe than Delta.
Euro (EUR) Slips amid New Covid Measures on Mainland Europe
The Euro (EUR) lost ground yesterday as Omicron continues to sweep through Europe, leading to new Covid restrictions in several European countries.
A risk-on market mood also weighed on the safe-haven single currency, with the UK data adding to other reports suggesting that Omicron is less of a threat than initially thought.
Looking ahead, if more countries in the Eurozone decide to bring in new Covid measures then EUR could continue its downside.
US Dollar (USD) Falls amid Risk-On Trade
The US Dollar (USD) fell against most of its rivals yesterday as a bullish trading sentiment dampened the appeal of the safer ‘Greenback’.
USD was able to claw back some gains following strong US data in the afternoon, with the PCE price index and durable goods orders overshooting forecasts. However, the US Dollar remained down on the day.
With the data calendar clear today for Christmas Eve, risk appetite may be the main driver of USD movement.
Canadian Dollar (CAD) Buoyed by Rising Oil Prices
The commodity-linked Canadian Dollar (CAD) gained against its weaker rivals yesterday as easing Omicron fears gave the oil market a boost.
Crude prices could continue to influence the ‘Loonie’ today. Will markets remain upbeat?
Australian Dollar (AUD) Ticks Lower as Rally Loses Momentum
The Australian Dollar (AUD) softened in overnight trade, as the risk-on rally faded. However, the ‘Aussie’ still holds most of its weekly gains.
New Zealand Dollar (NZD) Muted as Optimism Eases
Likewise, the New Zealand Dollar (NZD) eased off its weekly highs overnight as the market mood begins to stabilise after an upbeat week.