UK Omicron Outbreak Worries Sterling Traders

GBP/USD has dipped under 1.3300 as sterling traders worry about impact of UK Omicron outbreak. The GBP/USD pair slipped under 1.3300 in recent trade and is eyeing year-to-date lows. The pair has been eying the impact of concerns related to Omicron outbreak in the UK.

The sterling has been under pressure during US trading hours, pulling back from earlier session highs above 1.3350 to fresh session lows under 1.3300.

That leaves the pair only a few pips above annual lows printed last Friday at 1.3278. Recent weakness could be a reflection of fears that the Omicron Covid-19 variant, multiple infections of which have now been picked up across the UK, poses downside risks to the UK’s economic recovery this winter.

The government advised citizens over the weekend that masks would be required in indoor spaces once more and that social distancing was encouraged.

Meanwhile, the UK’s health minister seemed to hint that any potential lockdown restrictions, which have not yet been taken off of the table, would be linked to hospitalization rates.