Pound (GBP) Steady as on Omicron Optimism
The Pound (GBP) traded in a narrow range on Christmas Eve in thin market trade as a new UK government study suggested that Omicron is less severe than previous variants.
However, new record-high daily coronavirus cases and rising hospitalisations offset the study’s findings.
With no UK economic data out in the coming days, Covid news will likely be the main driver of GBP exchange rates as the UK government continues to hold off tightening restrictions.
Euro (EUR) Muted amid New Covid Restrictions
The Euro (EUR) struggled through Friday’s session as recent tighter restrictions in many European countries continued to act as a headwind for the single currency.
In addition, a risk-on market mood following the UK’s positive Omicron research dampened the appeal of the safe-haven Euro.
Looking ahead, new Covid measure being introduced in several Eurozone nations could weigh on EUR sentiment.
US Dollar (USD) Rudderless in Absence of Data
The US Dollar (USD) traded mostly sideways on Friday, as thin trading conditions left the ‘Greenback’ without a clear direction.
However, the safe-haven ‘Greenback’ showed resilience amid a risk-on market mood and managed to prevent any heavy losses as US Treasury yields rose on Federal Reserve rate hike expectations for March.
Major market-moving data is still thin on the ground today, so risk appetite could continue to play a key part in the value of the US Dollar.
Canadian Dollar (CAD) Wavers as WTI Crude Trade Closed
The oil-sensitive Canadian Dollar (CAD) fluctuated on Friday, with the WTI crude market closed for Christmas.
Turning to today, oil prices are likely to influence CAD. Will crude continue to recover on higher demand hopes?
Australian Dollar (AUD) Struggles amid Cautious Mood
The Australian Dollar (AUD) eased from its recent run of gains overnight as rising global Covid-19 cases weighed on risk appetite and limited the risk-sensitive ‘Aussie’.
New Zealand Dollar (NZD) Relinquishes Gains on Covid Headlines
The New Zealand Dollar (NZD) gave up some of its pre-Christmas gains at the start of this week’s session as coronavirus headlines and concerns over renewed restrictions spooked some investors.