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Sterling stages small recovery

Tuesday 21 December, 2021

Daily Currency Update

Sterling remained on the back foot at the start of the week as rumours continue to swirl around new measures being introduced after Christmas in order to curb the spread of the Omicron variant. Sterling finished the European session down nearly 0.65% against the euro and down 0.15% against the dollar. The pressure was added as the UK printed its second highest Covid-19 infection rate for a single day at 91,743. Although Sterling has staged a slight recovery this morning, it is definitely one of the major losers in the run up to Christmas as there is a huge concern on how the UK hospitality sector will be effectively shut down from 28th December onwards, with curbs on household mixing also to be introduced. The new restrictions weren’t limited to the UK, with the German government to restrict private gatherings of vaccinated and recovered to 10 people max from 28th December onwards. Even with news of further measures across the Eurozone’s biggest economic contributor, EURUSD finished the European session up 0.5% against the dollar and is testing the $1.13 handle this morning.

Key Movers

The new restrictions weren’t limited to the UK, with the German government to restrict private gatherings of vaccinated and recovered to 10 people max from 28th December onwards. Even with news of further measures across the Eurozone’s biggest economic contributor, EURUSD finished the European session up 0.5% against the Dollar and is testing the $1.13 handle this morning.

Expected Ranges

  • GBP/USD: 1.3205 - 1.3305 ▼
  • GBP/EUR: 1.1680 - 1.1750 ▼
  • GBP/AUD: 1.85 - 1.8650 ▼
  • EUR/USD: 1.1250 - 1.1350 ▲