Pound Higher As Omicron Worries Reduce
December 23 2021 - 2:45AM
RTTF2
The pound appreciated against its major counterparts in the
European session on Thursday, as latest studies indicating reduced
risks of hospitalization and severe illness in Omicron patients
bolstered risk sentiment.
AstraZeneca said that a three-dose course of its COVID-19
vaccine increased neutralizing antibodies against the Omicron to
levels that were broadly similar to those observed after the second
dose against the Delta variant.
Research from Imperial College London indicated that the risk of
hospitalisation for patients infected with the Omicron variant is
40% to 45% lower than Delta cases.
A study in South Africa found that the omicron variant appeared
to have a less severe impact than the earlier variants and there is
a reduced risk of hospitalizations than in previous waves.
Positive U.S. economic data on consumer confidence and GDP
signalled a solid recovery in the world's largest economy.
The White House said that Democrats will continue negotiations
with Senator Joe Manchin on the Build Back Better Act with a vote
planned in early 2022.
The pound jumped to near 4-week highs of 153.59 against the yen,
0.8422 against the euro and 1.2369 against the franc, following its
prior lows of 152.19, 0.8498 and 1.2262, respectively. The pound
may find resistance around 156.00 against the yen, 0.82 against the
euro and 1.26 against the franc.
The pound firmed to more than a 4-week high of 1.3435 against
the greenback, from a low of 1.3339 set at 5:45 pm ET. On the
upside, 1.37 is seen as its next likely resistance level.
Looking ahead, Canada GDP data for October, U.S. weekly jobless
claims for the week ended December 18, University of Michigan's
final consumer sentiment index for December, durable goods orders,
new home sales and personal income and spending data, all for
November, are due out in the New York session.
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