The Pound experienced some fluctuation on Tuesday but it did manage to eventually make gains following the latest UK jobs data which showed that a recovery had continued beyond the end of the furlough scheme.
However, the speed at which the Omicron variant is spreading is a cause for concern as this could push the economic recovery off track and this placed a cap on the gains. According to the Foreign Exchange Market the Pound finished at 1.1751 against the Euro and 1.3229 against the US Dollar.
The Euro gained ground quickly during the early part of the session yesterday before losing any gains during the afternoon. This was down to its negative correlation with the US Dollar although mixed sentiment around the Euro did weigh heavily on the single currency.
There was some volatility for the US Dollar yesterday as markets readied themselves for the Fed’s interest rate decision. Changes in global risk sentiment also had an impact on the safe-haven currency while investors are still waiting to find out what impact the Omicron variant will have on the economy and its recovery.