Yesterday we used this phrase in our Market Comment "So for now the Pound is softening up but we don't expect this to move vastly without a bigger news story." It's fair to say that yesterday saw that bigger news story for the Pound. Moving to Plan B by the Government had been knocked back previously. However the doubling up of Omicron cases every 2 to 3 days has caused a quick shift. It's fair to say No 10 might not be holding any Christmas parties this year....
The news started getting priced in through the afternoon and looks to have steadied down now.
What's going to be interesting is how other countries respond to this outbreak of the new strain. Indications are that it's a lot more transmissible than previous variants and the UK appears to have been very quick to respond. Maybe other countries will follow so the the next week will be interesting in the markets.
The markets are more likely to be at the throes of global news stories rather than scheduled data for the near term unless there's a significantly number out compared to consensus.
This afternoon sees Initial Jobless Claims from the US. However the bigger news will be at breakfast tomorrow with the UK publishing its GDP, Trade Balance and Industrial Production numbers.
As ever we look forward to keeping you in the loop and look out for our next update.
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Today’s Economic Calendar
US: 13:30 Initial Jobless Claims
UK: Friday 07:00 GDP, Trade Balance and Industrial Production data