- GBP/USD stalls its rebound just shy of 1.3300 in the European session.
- The US dollar drops amid an upbeat market mood while yields hold firmer.
- Rising Omicron cases in the UK offset encouraging Brexit news.
GBP/USD is paring back gains while heading towards 1.3250 in the European session, as rising cases of the new Omicron covid variant in the UK overshadows the broader market optimism.
The pound bears the brunt of the unstoppable growth in new infections, with 336 confirmed cases of the highly-mutated variant across the UK on Monday, a rise of 90 from Sunday.
The UK Health Secretary Sajid Javid said that “there is community transmission of the Omicron coronavirus variant in multiple regions of England.”
In light of this, cable traders have failed to capitalize on the prevalent risk-on sentiment, fuelled by the Chinese stimulus measures and easing fears over the new covid strain worldwide.
Markets have also ignored the latest positive developments on the Brexit front, as well as, the encouraging comments from the UK drugmaker GlaxoSmithKline.
The pharma giant said that the data was built on a promising signal published last week, underscoring the importance of Sotrovimab for the early treatment of COVID-19.
On the latest Brexit update, the UK is expected to offer France an olive branch to resolve the fishing row, per The Telegraph. British sources said an agreement could be reached on ‘replacement boats’, which would allow issuing of more permits to EU vessels.
Looking ahead, the Omicron stats from the UK will be closely eyed amid a data-dry calendar. The dynamics in the yields and the dollar could also impact the major.
GBP/USD: Technical levels to consider
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD holds above 0.6600 ahead of the US PMI, Fed’s Powell speech
The AUD/USD pair holds above the 0.6600 psychological mark during the early Asian session on Friday. However, the rebound of the US Dollar might cap the pair’s upside in the near term. Meanwhile, the US Dollar Index surges to 103.50 while the US Treasury bond yield edge higher.
EUR/USD suffers worst decline in months, stays below 1.0900
EUR/USD lost almost a hundred pips on Thursday, having the worst day in months. The Euro lost ground across the board while the US Dollar had a mixed performance after US data pointed to softer inflation and a more balanced labor market.
Gold recovers its losses near $2,040, focus on US PMI, Fed’s Powell speech
Gold price recovers its recent losses near $2,040 during the early Asian session on Friday. The anticipation that the Federal Reserve to hold rates steady and perhaps start cutting in 2024 weighs on the US Dollar and lends some support to the USD-denominated gold.
Cosmos Price Prediction: ATOM eyes 10% gains amid chatter about a fork
Cosmos price is trading with a bullish bias despite a rejection from the $10.218 resistance level. The optimism comes on the back of chatter of a possible fork, expected to result in an airdrop, an outcome that would be effectively bullish for Cosmos Hub.
US: Moderation in personal spending amid more cooling in prices
Personal income and spending report shows consumers are throttling back. Not only are households spending less, but also the composition of outlays is tilting in a way that suggests a more budget-conscious mindset even as income is holding up better than first reported.