Sentiment regarding the Omicron variant still dominates the market, although there is uncertainty about it having provided moderate support for US dollar trading in today’s trading session.
A recent study from Japan has revealed that the Omicron variant is 4 times more easily transmitted in its early stages than the Delta. This caused investors ’confidence to falter a bit that the new variant would only have a mild impact.
As a first step, the UK acted swiftly by implementing new sanctions to curb the wider spread after recording a sharp increase in cases of infection over the past few days.
As a result, the pound fell to its lowest level in 2021 due to fears that the country's recovery would be affected due to this implementation.
On the other hand, vaccine maker Pfizer said the results of its study showed that a third dose of their vaccine could neutralize the Omicron variant.
This mixed news makes major currency trading limited around the same price level.
Still, the Aussie dollar remained strong with support from the Australian Central Bank (RBA) which said the economic recovery would not be affected because of this new variant.
Meanwhile, the Canadian dollar has eased gains following a policy statement by the Central Bank of Canada (BOC) which said it was concerned over the Omicron variant which could create uncertainty in the country's economic recovery.
