Pound Rebounds From Omicron-led Losses
December 13 2021 - 4:11AM
RTTF2
The pound climbed against its major rivals in the European
session on Monday, erasing its early losses, as investors focus on
central bank meetings for the possible future course of monetary
policy.
A slew of central bank policy meetings are due this week,
including in U.S, Europe, Switzerland, U.K. and Japan.
The Fed is expected to quicken tapering of its asset purchase
programme and possibly signal earlier rate hikes in the wake of
elevated inflation. The U.S. central bank will end its two-day
meeting on Wednesday.
The currency fell in early trades following a warning from Prime
Minister Boris Johnson that a "tidal wave" of the Omicron variant
of the coronavirus is looming and urged to get a booster dose
before the New Year.
In a televised address on Sunday night, Johnson said that a
tidal wave of the Omicron is coming and set a deadline to give
booster shots before the New Year.
Johnson's speech came after the U.K. raised its covid alert
level to four from three amid a jump in the cases of the new
variant.
The pound hit a 5-day high of 0.8500 against the euro, after
falling to 0.8538 at 2:45 am ET. If the pound rallies again, 0.84
is likely seen as its next resistance level.
The pound rose to 1.3268 against the greenback, from a low of
1.3222 seen at 2:30 am ET. The pound is seen finding resistance
around the 1.34 mark.
The pound appreciated to a 6-day high of 1.2258 against the
franc, after a fall to 1.2195 at 6 pm ET. The currency is likely to
resistance support around the 1.24 region.
The pound recovered from its Asian session's low of 149.89
against the yen and was trading at a 6-day high of 150.75. On the
upside, resistance is likely seen near the 152.00 level.
Sterling vs Yen (FX:GBPJPY)
Forex Chart
From Mar 2024 to Apr 2024
Sterling vs Yen (FX:GBPJPY)
Forex Chart
From Apr 2023 to Apr 2024