New crisis for the UK: the pound under pressure

NS UK Fearful of Omicron weakens it GBP,

NS english currency On Wednesday, December 8, it fell to its lowest level in more than a year against the dollar, as the prospect of new restrictions on the coronavirus for the UK economy turned cloudy.

measure of johnson These will be introduced from December 10 to avoid the wave of new strains. In this new context of uncertainty over the trend of the pandemic, the pound is losing ground against the dollar.

Pound sinks to Omicron and beyond

8 December was a dark day for the British currency, trading 0.5% lower $1,317 As soon as the first rumors about the so-called Plan B johnson, including some new restrictions.

Today, Thursday 9 December, the rules have been made official. Specifically, from Friday 10 December, masks are mandatory for most indoor public places, including places of worship, cinemas and cinemas, as well as public transport and places like shops and barbershops.

From Monday 13 December people should work from home if possible and from Wednesday 15 December (subject to parliamentary approval), a covid pass NHS – vaccination status or recent showing negative lateral flow test – to access various public places and events.

in this frame, Confidence in Britain’s recovery weakened and the pound lost strength against the greenback.

couple GBP/USD It is trading at 1.3205 as you are writing.

to impose the strictest sanctions against omicron This has forced investors to cut back on bets in the UK due to an imminent hike in the Bank of England’s interest rate. This, with persistent uncertainties related to Brexit, continued to act as a headwind for British Pound,

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Other than this, U.S. Dollar Attracted fresh buying and bullish Fed expectations further supported the greenback and put some downward pressure on the pair GBP/USD,

The fall in the pound highlights the various effects of Omicron on the expected monetary policy path on opposite sides of the Atlantic.

President of federal Reserve Jay Powell last week signaled his support for a swift withdrawal of the US central bank’s massive bond buying program, paving the way for rate hikeDespite the danger posed by Omicron’s rapid spread.

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About the Author: Forrest Morton

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