- The pound sterling advanced for the second day in a row, with a rise of 0.43%.
- The UK Prime Minister said England could handle the Omicron variant without re-imposing lockdown restrictions.
- US ADP national employment figures beat economists’ estimates, rising above 800,000.
On Wednesday, the GBP Sterling advanced during the American session, trading at 1.3571 at the time of writing. Market sentiment remains mixed, with US equities fluctuating between winners and losers. Despite the above, risk-sensitive currencies such as the British pound advanced 0.43% to the detriment of the dollar.
The UK is under slight pressure from the Omicron surge. On Tuesday, the UK reported 218,724 new cases of Covid-19. British Prime Minister Boris Johnson said England could withstand a surge in Covid-19 infections without shutting down the economy.
The Prime Minister further noted that “along with the Plan B measures that we introduced before Christmas, we have an opportunity to overcome this Omicron wave without shutting down our country once again. We can keep our schools and our businesses open, and we can find a way to live with this virus. “
Meanwhile, during the night session, the GBP / USD pair remained subdued in the range of 1.3525-55, but in the last hours, it crossed a descending trend line drawn from the highs of the June 2021 cycle, which is crossed with the 100-day moving average (DMA) around the 1.3545-60 area. The trend line break is courtesy of the dollar’s softer trading tone, with the US Dollar Index falling 0.27% to settle at 96.00.
On Wednesday, the US ADP National Employment Report portrayed that November private payrolls rose 807,000 more than the 400,000 estimated by analysts. The same data reported a lower revision for the October reading of 534,000 to 505,000.
The data could be a prelude to nonfarm payrolls to be released Friday, January 7, by the US Bureau of Labor Statistics. Economists expect employment figures to hit 400,000, while the rate of employment is expected to hit 400,000. unemployment falls from 4.2% to 4.1%.
Later in the day, the Federal Reserve will release the FOMC’s December 2021 Minutes.
Technical levels
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