Sterling Performs Against Majors

Sterling raced higher against the Euro, Dollar and its major peers after the Bank of England decided to go ahead and raise interest rates. This move was a surprise to investors as it was expected the Bank of England would possibly hold off until February due to the uncertainty surrounding new Covid restrictions and the main concern of the omicron variant.

The Euro roses after the ECB have effectively tapered its quantitative easing programme and this surprised a market that had expected the slow-moving central bank to maintain generous monetary settings for an extended period. This helped the euro gain losses against sterling after the Interest rate rise.

The Dollar remains close to yearly highs and this has remained the same for the dollar through out the December month with help also Last week as the FED announced they will possibly raise interest rates 5-6 times over the next two years and have decreased their bonds purchasing programme.

Latest government data shows there are 1,534 Covid patients in London hospitals – up 28.6% on last week.

Also london mayor Sadiq Khan said ‘Omicron is now the “dominant variant” in London and was having an impact on staff absences in the emergency services across the city.’

Mr Khan said in the last 24 hours, London had seen the largest number of new cases since the coronavirus pandemic began which was more than 26,000 and On Friday, the UK saw another record number of daily Covid cases for the third consecutive day, with more than 93,000 infections confirmed.