GBP/USD Advances On Back of Positive US Data

The sterling is sharply advancing up some 0.57%, rallying during the New York session, trading at 1.3344. The market sentiment is positive, as shown by European and US stock indices, trading in the green territory. Investors’ assessment of the Omicron variant slightly dented the market mood before Wall Street opened.

At the last hour, shares surged, while in the FX market, risk-sensitive currencies point upwards, led by the GBP. Furthermore, positive news from South Africa, reporting that the current wave of the variant are 80% less likely to be hospitalized if people catch the Omicron, according to a study, improved risk appetite.


The Conference Board reported that Consumer Confidence in December rose by 115.8, more than the 110.8 estimated. Since July, it is the best mark before the Delta wave that weakened confidence in the Q3. Consumer confidence improved further in December, following a very modest gain in November.

Concerns about inflation declined after hitting a 13-year high last month, as did concerns about COVID-19, despite reports of continued price increases and the emergence of the Omicron variant. The GBP/USD reacted upwards after the report hit the wires, jumping from 1.3318 to 1.3334.

Looking ahead in the week, the UK economic calendar would not report data on Thursday. Durable Goods Orders for November, Initial Jobless Claims, and the Core Personal Consumptions Expenditures, the Fed’s favorite gauge of inflation, will entertain GBP/USD traders.