Boris Johnson holds off introducing new restrictions in the UK, despite hospitalizations increasing by 33% in London. Global stocks rally on improving risk sentiment.
December 21, 2021
GBP/USD 1.3243 GBP/EUR 1.1720 EUR/USD 1.1299 USD/CAD 1.2937 EUR/CHF 1.0393 EUR/SEK 10.3097 EUR/NOK 10.1824 EUR/DKK 7.4359 USD/ILS 3.1613 AUD/USD 0.7124 NZD/USD 0.6747 USD/SGD 1.3643 USD/JPY 113.67 USD/CNH 6.3780 USD/INR 75.5775 EUR/ILS 3.5714 GBP/ILS 4.1864 USD/ZAR 15.8321
Boris Johnson held off imposing new curbs yesterday, as hospitalisations in London increased by one third. Reports suggest indoor socialising may be restricted from December 27th , resembling the ‘Stage 2’ curbs from last Winter . GBPUSD briefly traded near support of 1.3178 yesterday, before retracing to the mid-1.3200s where it trades this morning, as risk appetite improved.
UK public borrowing declined in November as the furlough scheme came to an end, helping to cut public spending. Net borrowing printed around £17.4bn, just under £5bn less than November 2020. The FTSE plunged yesterday on the European open in line with global stocks, however has recovered this morning to trade 0.9% higher.EUR
Investors have followed Asia’s pro-risk stance this morning, with equities higher in early trade. The Euro Stoxx 50 is up 1.1%, with most domestic indexes up at least 0.9%. EURUSD has edged 0.2% higher this morning, continuing yesterday’s upward trend to gain 0.6% on the week so far.
Hospitality restrictions in Ireland came into force yesterday, with venues including pubs, restaurants, cinemas and theatres closing by 20:00. The measures are due to stay in place until at least the end of January.USD
Stocks rose on bets that the booster rollout can help to control the Omicron outbreak, along with indications that Joe Biden may still be able to pass his $2trillion economic agenda. A call between Manchin and Biden yesterday has stoked optimism that the deal can be revived. The S&P and Nasdaq added 0.3% and 0.4%, whilst the 10-year treasury yields advanced 1.52%.
Figures released by the CDC show the Omicron variant is spreading across States quicker than expected, with the variant now accounting for 73% of cases, up 13% on the previous week. President Joe Biden Is expected to announce further measures to tackle the spread today.ASIA/PACIFIC
Commodity currencies climbed as risk appetite was boosted by stabilising Asian equities. The Kiwi Dollar gained the most against the Dollar in its group of 10 peers, up 0.2%, after falling for two consecutive sessions.
The Turkish Lira gained more than 10% against the greenback after President Erdogan announced new measures to bolster their currency late on Monday. The measures include a new program which will protect savings from fluctuations in the Lira.ILS
The Shekel has weakened sharply against the Dollar so far this week, due to the rapid increase in global Omicron cases and declining stock market. USDILS is trading 1.15% higher since yesterdays open, to trade at 3.1610 as we print.Data & Events
Germany – Consumer Confidence
Euro Area – Consumer Confidence
UK – Public Sector Net Borrowing
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