Home > Resource Hub > Daily Market News > Covid continues to plague markets

Covid continues to plague markets

Covid continues to plague markets

The ongoing spread of the Omicron variant in Europe and the US continues to weigh heavily on investor sentiment, with the Euro Stoxx 50 and the S&P 500 down yesterday. Currency wise, sterling was under fire from the beginning of the European session as market’s adjusted to the record breaking UK Covid case numbers over the weekend. A raft of negative political newsflow is also leading to growing pressure on PM Johnson.

The above was shown with GBP/USD falling near to its YTD low down at $1.317, before edging back above the $1.32 mark. Further pressure on sterling was evidenced with EUR/GBP closing 0.3% higher than its opening level. The euro also registered some solid gains against the dollar as well. 

As we get underway this morning, yesterday’s euro strength continues as EUR/USD opens just below the $1.13 mark. EUR/GBP remains centred in the 85-86p range and GBP/USD is in the bottom half of the $1.32-1.33 trading band. In terms of today’s data releases, already this morning we have had the latest reading of German consumer sentiment, which declined by more than anticipated (-6.8 vs –2.7 f’cast). Later we have the Eurozone wide measure of consumer confidence, the index is forecast to deteriorate also. 

Barring any surprises, expect traders to be closely following covid newsflow and growing political pressure on Boris.

Share this case study
Set yourself up in minutes, make payments the same day: it’s free, easy and without obligation.