The Pound Euro exchange rate (GBP/EUR) is rising, paring yesterday’s losses
The Pound dropped in the previous session in risk off trade after Moderna’s chief executive warned that current COVID-19 vaccines could struggle to protect from the new Omicron variant.
Fed Chair Powell also unexpectedly announced that the Fed no longer considered inflation transitory, meaning the Fed could accelerate its path raising interest rates.
Omicron developments and manufacturing PMIs for both the UK and the Eurozone will be in focus. Both the UK and the EU are expected to see manufacturing activity tick higher in November.
The Euro received a boost on Tuesday from record inflation which could pressurize the ECB to move sooner to tighten monetary policy.