Sterling Gaining Momentum


The pound gained against both Euro and Dollar on Wednesday as optimism surrounding Brexit and the Omicron variant edged sterling higher. It is deemed that the Omicron variant is not as deadly as first suggested. Furthermore the number of cases of covid remains downbeat with the latest figures of 106,122 daily infections.

In regards to Brexit, Britain has agreed new fisheries deal with the European Union over how to divide up shared stocks in the year ahead. The details, however, also cite the agreement as, “a separate affair from the row over fishing licenses which has sparked threats of a trade war and prompted French trawlers to blockade the Channel. If this is true then we could see sterling gain further momentum and rally further against the Euro.

Key announcements

1:30 – USD – Core PCE Price Index m/m – Set to remain unchanged at 0.4%
1:30 – USD – Core durable goods m/m – Forecast at 0.6 from previous 0.5%
1:30 – USD – Durable goods orders m/m – Forecast at 1.9% from previous -0.4%