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Boris holds off from new restrictions

Wednesday 22 December, 2021

Daily Currency Update

There has been very little volatility so far this week. Of the limited moves to note, sterling regained some minor support, after Boris Johnson announced that the UK Government will hold off from introducing any new restrictions before Christmas in order to stem the recent rise in Covid-19 cases. GBPUSD continued to trade around the midpoint of $1.32-1.33 and GBPEUR made a break away from the €1.17 handle back to €1.1770. This morning, the final reading of UK GDP has been revised lower to 1.1% in Q3, from 1.3% previously.

Key Movers

The light data schedule this week is most likely causing the lack of volatility across the currency markets. The only key data release was the latest reading of consumer confidence in the Eurozone. The index declined by more than expected in December printing a figure of -8.3 against a forecast of -8.0, this can be attributed to more restrictions being brought in across the Eurozone. However, the data did not have much of an impact on the Euro

Expected Ranges

  • GBP/USD: 1.3230 - 1.3330 ▲
  • GBP/EUR: 1.1720 - 1.1805 ▲
  • GBP/AUD: 1.8505 - 1.8650 ▲
  • EUR/USD: 1.1225 - 1.1330 ▲