Expectation Rises for Dec Rate Hike
GBP/USD treads water around 1.3255-60 during the early Asian session on Tuesday, following a positive daily performance. The UK reported Monday that sequenced Omicron cases had grown 50% in a day to 246, amidst “early signs” the new variant could start “outcompeting” Delta within weeks.
EUR/USD is trading modestly flat below 1.1300. Treasury yields stay firmer amid market’s optimism surrounding the new Omicron covid variant. German ZEW and Eurozone GDP awaited.
EUR/GBP remains on the defensive, around 0.8500 post-German Industrial Production data in the absence of any negative Brexit-related headlines, the British pound’s relative outperformance could be attributed to rising bets for an imminent rate hike by the Bank of England in December.