After the brief flurry of support after the interest rate rise last week the pound has settled back to the same position as this time last week against the euro and US dollar.
Both GBP/EUR and GBP/USD are still roughly 2% down on their position before the Omicron variant arrived.
The British government – after a long cabinet meeting – announced yesterday that further lockdown measures remain a possibility for the future, but would not be imposed for now. The Prime Minister urged the public to “exercise caution” in their work and social lives. The Queen has cancelled her own plans for Christmas and will remain in one of her other homes instead of traveling to Sandringham.
Indeed, the evidence from the high streets, cinemas and hospitality sector is that the public appears to be toning down pre-Christmas activity of their own accord. High street footfall was down 25% on Sunday compared to the same day in 2019.
The economics summit at Davos has been postponed for a second year as cases continue to rise globally, including the first Omicron death in the USA, an unvaccinated man in Texas.
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