Pound US Dollar Exchange Rate Hits Highest Point in Six Weeks
The Pound US Dollar (GBP/USD) exchange rate has hit its highest point in six weeks today. The Pound has continued to see support from the real-world studies that suggest the Omicron variant may be less serious than first thought.
At time of writing the GBP/USD exchange rate is at around $1.3488, which is up roughly 0.4% from this morning’s figures.
US Dollar (USD) Tumbles amid Record-High Covid-19 Cases
The US Dollar (USD) has fallen against many of its rivals today amid record-high Covid-19 cases and a fresh record of the country’s goods trade deficit.
The average number of Covid-19 cases in the US hit a record high of 258,312 over the past seven days as the government continues to assess the impact of the Omicron variant.
Officials have said that whilst data from other countries showed the Omicron variant to be less severe than previously thought, the uneven vaccination rates across the country have made the variant’s impact difficult to assess.
It’s possible that USD’s chances will continue to worsen if the Omicron variant causes cases to climb even higher or if the federal government decides to impose any restrictions.
The US Dollar could see a boost today however after a widening of the country’s trade deficit to $97.8b in November. The level of imports rose to 4.7% as supply bottlenecks eased and retail inventories rose. The level of exports weakened however falling by 2.1% to $154.7b which may cause some uncertainty for USD investors.
Pound (GBP) Ticks Upwards amid Promising Omicron Data
The Pound has trended upward against some of its rivals today amid reports of a record 129,471 new Covid-19 cases on Tuesday.
UK Prime Minister Boris Johnson has ruled out further restrictions before the New Year, but has stated that the government is watching the data closely. Despite case figures, the Pound may have been boosted by reports from both the UK and South Africa that the Omicron variant may be less severe than initially thought.
The latest hospitalisation numbers from the UK may also have helped the Pound gain upward momentum, as the number of patients in hospital with Covid-19 currently sits well below the record highs of 34,000 from January.
The Pound may face headwinds from Brexit this week however, as negotiations between the UK and the EU continue to rumble on. Following the appointment of Liz Truss as UK chief negotiator, EU Vice President Maroš Šefčovič said he was ‘pragmatic’ and hoped that it would help bring about a successful joint solution.