GBP/USD CRASHES

Risk assets were under pressure after Moderna Chief Executive Stéphane Bancel told the Financial Times that existing COVID-19 vaccines are unlikely to be as effective against the newly detected variant as they have been previously. On the other hand, there are mixed messages with the CEO of BioNTech saying the current generation of Covid-19 vaccines will probably still protect against severe disease in people infected by the omicron variant. However, drugmaker Regeneron Pharmaceuticals Inc said on Tuesday its COVID-19 antibody treatment could be less effective against Omicron.

Nevertheless, the uncertainty has rocked the socks off risk assets. The markets have also got what they were waiting for in Powell’s testimony today, firming the belief that the Fed may still have to hike sooner than first expected despite the threat of the virus. However, it is yet to be seen as to what the Bank of England’s bias will now be. 

Inflation has moved sharply higher in the UK, but the BoE has remained firmly with the opinion that inflation will be transitory whereby the three components, food, energy, and autos price has been affected by the supply chain blockages and re-opening of the economy.

Wage data is also mixed, analysts at TD Securities argued. ”Headline wages are distorted by furlough and compositional effects, but underlying pay growth is still rising. Flash October PAYE pay data shows the first drop in median pay since the early days of COVID, as the furlough scheme ended.”

”The BoE’s Dec meeting remains finely balanced. A single hike before March is all but certain, but Omicron may hold the MPC off until February.”

GBP/USD

OVERVIEW

Today last price    1.3253

Today Daily Change    -0.0050

Today Daily Change %    -0.38

Today daily open    1.3303

TRENDS

Daily SMA20    1.3448

Daily SMA50    1.3579

Daily SMA100    1.369

Daily SMA200    1.3817

LEVELS

Previous Daily High    1.3363

Previous Daily Low    1.3288

Previous Weekly High    1.3457

Previous Weekly Low    1.3278

Previous Monthly High    1.3834

Previous Monthly Low    1.3434

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. . more information you can follow link below

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