Pound Climbs As Omicron Worries Lessen
December 29 2021 - 2:14AM
RTTF2
The pound climbed against its major opponents in the European
session on Wednesday, as investors looked past a spike in Omicron
cases across the globe.
South African scientists released a study showing that infection
with the Omicron variant boosts immunity against the Delta
strain.
The study showed that immunity to subsequent infections from the
new strain rose 14-fold after being infected. It also suggested
that the likelihood of reinfections with Delta will be limited
among those infected with Omicron.
The rapid spread of the Omicron could lead to more
hospitalizations, particularly among unvaccinated groups, and cause
widespread disruption to health systems and other critical
services, WHO Europe's Covid Incident Manager Catherine Smallwood
warned.
France, UK, Italy, Greece, Portugal and Cyprus all reported
record daily infections on Tuesday.
The pound reversed from its prior lows of 154.05 against the yen
and 0.8423 against the euro and edged higher to 154.45 and 0.8403,
respectively. The pound may locate resistance around 157.00 against
the yen and 0.82 against the euro.
The pound rose to 1.2345 against the franc and 1.3438 against
the greenback, following its early low of 1.2306 and a 2-day low of
1.3408, respectively. On the upside, 1.26 and 1.37 are likely seen
as the next resistance levels for the pound against the franc and
the greenback, respectively.
Looking ahead, U.S. pending home sales, wholesale inventories
and advance goods trade balance for November will be out in the New
York session.
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