Sterling is strong against the dollar and reached a near 5-year high against the euro this morning. This is mainly due to confirmation that no further Covid restrictions will currently be introduced to combat the surging Omicron variant.
Speaking at a press conference yesterday, the Prime Minister said there was a “good chance” that no fresh measures will be introduced, and that Plan B restrictions should continue in the hope that the country can “ride out” the Omicron wave.
In the wake of this, companies are calling for travel restrictions to be lifted, with airlines saying that passenger testing is having little impact on rising cases.
In the US, the Federal Reserve will release the minutes from its December meeting later. The markets will be listening out for any suggestion of interest rate hikes in the near future.
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