Pound Firms; U.S. Dollar Drops As European Stocks Gain
December 21 2021 - 2:35AM
RTTF2
The pound climbed against its major counterparts in the European
session on Tuesday, as European stocks rose following positive cues
from Asia, amid a gain in commodity stocks.
Oil rebounded following a selloff on Monday as investors
reassessed the risks from the Omicron variant.
Moderna announced on Monday that a booster dose of its Covid-19
vaccine increased antibody levels against Omicron.
The currently authorized 50 microgram booster dose increased
neutralizing antibody levels against Omicron approximately 37-fold
compared to pre-boost levels.
In another development, Senate Majority Leader Chuck Schumer
said that there will be a vote on a revised version of the Build
Back Better Act in January.
In the U.K., PM Boris Johnson said that fresh curbs are unlikely
to be imposed before Christmas, but cautioned that the situation
was "extremely difficult".
The PM added that the government is looking to keep Omicron
under control and cannot rule out implementation of additional
measures after Christmas.
The pound was up at 4-day highs of 1.3261 against the greenback
and 150.78 against the yen, following its prior lows of 1.3197 and
149.89, respectively. Next key resistance for the pound is possibly
seen around 1.34 against the greenback and 153.00 against the
yen.
The pound edged higher to 0.8507 against the euro and 1.2224
against the franc, rebounding from its early low of 0.8549 and near
a 2-week low of 1.2144, respectively. The pound is seen finding
resistance around 0.84 against the euro and 1.24 against the
franc.
The safe-haven dollar fell amid an improvement in risk
sentiment.
The greenback weakened to 1.1303 against the euro, from a high
of 1.1273 seen at 7:00 pm ET. The greenback is likely to face
support around the 1.14 region.
The greenback touched 4-day lows of 0.7137 against the aussie
and 0.6759 against the kiwi, down from its early highs of 0.7099
and 0.6703, respectively. The next possible support for the
greenback is seen around 0.74 against the aussie and 0.69 against
the kiwi.
The greenback retreated to 1.2924 against the loonie and 113.56
against the yen, from its early high of 1.2947 and a 4-day high of
113.77, respectively. The greenback is poised to find support
around 1.26 against the loonie and 112.00 against the yen.
The greenback declined to 0.9195 against the franc at 3:30 am
ET, but it has since rebounded to 0.9226. The greenback may test
resistance near the 0.93 level.
Looking ahead, Canada retail sales for October will be featured
in the New York session.
Eurozone flash consumer sentiment index for December will be out
at 10:00 am ET.
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