By Luke Dyson
Following last night’s unexpected announcement from Boris it is clear the new Omicron variant is now becoming a problem for the UK as case numbers and hospitalisations increase. It was stated that now having two covid vaccinations is not enough to keep you fully protected and now has left the majority of the UK at risk. Following on from this, third vaccinations have now been extended to anyone over the age of 18 who would like one, in an attempt to stop the NHS being overrun again as the virus begins to spread.
BOE interest rate decision
On Thursday the 16th there is a UK interest rate decision, the one held last month moved the market drastically following a shock decision for the rate to remain the same, placing more strain on sterling. It is projected there will be an interest rate hike of 15 basis points Thursday, however as we are nearing the date and Omicron cases are rising the likelihood of another delay is becoming a strong possibility, with banking analysts suggesting a 10% chance of this being the case.
The uncertainty in the UK is rising by the day moving forward; Omicron has the power to significantly damage the strength of sterling if it gets out of control, with this factor now impacting interest rate decisions it seems there is a lot more negativity in the market than positivity for sterling. If you have a currency requirement up and coming please get in touch with your currency consultant today to see what we can do to help reduce your currency risk. In the coming days/weeks we could see some big market movements, in the wrong direction could cost you thousands of pounds more than at present.
Data this week
Today: Bank of England stability report (5pm)
Tomorrow: UK unemployment (7am)
Wednesday: UK inflation (7am); Canadian inflation (1.30pm); US interest rate decision (7pm)
Thursday: UK interest rate decision (12pm); Eurozone interest rate decision (12.45pm)
Friday: Eurozone inflation (10am)