Positive Omicron News Still Doesn’t Support the US Dollar as it Weakens

The increase in the UK’s construction PMI gave the Pound an initial boost on Monday as the data indicated that this was the fastest increase in purchasing for three months.

Despite this, comments from the Bank of England put a stop to any gains as the bank expressed concerns about the challenging period for monetary policy and this pushed the currency back slightly. According to the Foreign Exchange Market, the Pound finished at 1.1754 against the Euro and 1.3262 against the US Dollar.

The Euro failed to make any gains during trading on Monday as it lost ground against many of its rivals following a drop in German factory orders which fell more than expected. There was a contraction of 6.9% which was a lot higher than -0.5% and this weighed heavily on the single currency.

The US Dollar also lost ground against many of its rivals as a risk-on mood meant that demand for the Greenback dropped. This improved sentiment came after the news was released that it’s looking likely that the Omicron variant causes mild symptoms while the preliminary data is also looking fairly promising.

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