The pound managed to cap Monday’s losses and rebounded against the US dollar. Its progress against the euro was limited as the pair traded within the top half of the €1.10 handle for the majority of the day. Focus today will firmly be on the US with the Georgia Senate runoff results expected to come through.
Yesterday’s support for sterling likely came from Chancellor Sunak’s announcement of fresh support for the UK economy. The assistance totals up to almost £5-billion, a significant amount which will hopefully ensure the economy does not see too much pain from the latest lockdown measures.
All eyes will be on the US state of Georgia today with one of the two results already announced. Democrat Raphael Warnock has beaten incumbent Senator Kelly Loeffler. This leaves one seat which, if taken by Democrat Jon Ossoff, would flip the Senate. The US dollar is weaker overnight and this theme seems to be continuing into the European session.
8:26am, January 6th 2021
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