The pound is trading near a 2021 high against the euro and is strong against the dollar this morning, mainly due to upbeat market sentiment.
The FTSE 100 has hit a pandemic high this morning on hopes that the Omicron variant may not be as severe as initially feared, despite cases hitting a record high yesterday. Following studies released last week, the government’s life sciences adviser said that Omicron “appears to be less severe and many people spend a relatively short time in hospital”.
Sterling has strengthened following this and is likely to continue to react to news surrounding the pandemic for the rest of this week and into the new year.
It’s a fairly quiet week for economic data releases, although in the US we can expect to see home sales figures today and jobless claims data tomorrow.
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