Markets Remain Volatile After News Of New Covid Variant

Throughout the session on Tuesday, the Pound lost ground as it suffered from a lack of data, leaving it open to losses.

Brexit uncertainties are weighing heavily on the currency while comments from the Bank of England around the new Covid-19 variant potentially slowing down consumer spending also added to its woes. At the end of trading, the pound finished at 1.1734 against the Euro and 1.3296 against the US Dollar according to the Foreign Exchange Market.

The Euro saw a sharp rise before the session started yesterday but it then started to drop even though German employment data looked positive. There was no clear driver for any movement which meant that it was at the mercy of the latest Omicron variant news throughout the Eurozone and the rest of the world. 

The US Dollar started the day behind after traders reacted to the new Omicron variant as they stopped bets on a rate increase from the Federal Reserve. However, the safe-haven currency then reacted to comments from the Federal Reserve as it said that the central bank could still speed up the tapering process but still, the US Dollar could not retain these gains.


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