# Sterling erases post-BoE gains as Omicron weighs
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-12-20
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: British Pound Slips as Concerns Swirl over Biden's
Meta Description: Stay informed on the latest GBP trends as the dollar gains ground amid Biden's infrastructure doubts and Brexit tensions.
URL: https://financedigest.com/sterling-erases-post-boe-gains-as-omicron-weighshtml

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LONDON (Reuters) – The British pound slipped to a three-day low on Monday, nearing $1.32 versus the greenback as a broad risk-off mood swept through financial markets.

Growing doubts about U.S. President Biden’s infrastructure program to [see the light of day due](https://www.financedigest.com/uk-retailers-see-40-jump-in-boxing-day-shoppers-springboard.html "UK retailers see 40% jump in Boxing Day shoppers -Springboard") to Democrat Joe Manchin’s ‘no’ is prompting a rethink about U.S. growth forecasts for 2022 while [surging Omicron cases in Europe](https://www.financedigest.com/air-pollution-surges-as-heatwave-sweeps-across-europe.html "Air pollution surges as heatwave sweeps across Europe") are driving worries of potential lockdowns. \[L8N2T50V3\]

The U.S. [dollar was the chief beneficiary from the cautious mood](https://www.financedigest.com/world-stocks-cling-to-upbeat-mood-dollar-stalls.html "World stocks cling to upbeat mood, dollar stalls") with the British pound also hobbled by negative newsflow on the Brexit front.

Foreign Secretary Liz Truss will become [Britain’s lead](https://www.financedigest.com/britain-says-it-is-committed-to-leading-a-nato-task-force-in-2024.html "Britain says it is committed to leading a NATO task force in 2024") negotiator with the European Union over trade to Northern Ireland following the resignation of Brexit minister David Frost, the prime minister’s office said on Sunday.

Against the dollar, the British pound, [edged 0.2% lower](https://www.financedigest.com/sterling-edges-lower-ahead-of-key-data.html "Sterling edges lower ahead of key data") at $1.3205. Versus the euro, the pound weakened by 0.4% to 85.24 pence.

At current levels, the pound has erased all its [gains sustained on the back of the Bank](https://www.financedigest.com/asian-shares-gain-as-fears-about-rapid-fed-hikes-bank-crisis-fade.html "Asian shares gain as fears about rapid Fed hikes, bank crisis fade") of England unexpectedly raising interest rates last week.

Support from the blindsided [BoE action in raising rates](https://www.financedigest.com/boe-raises-rates-again-as-investors-look-towards-end-of-hikes.html "BoE raises rates again as investors look towards end of hikes") was only temporary with focus more on Omicron and government disarray,” NAB strategists said.

Britain’s Deputy Prime Minister Dominic Raab said on Monday he couldn’t make any guarantees when asked whether the government would [impose further restrictions](https://www.financedigest.com/chinas-covid-resurgence-spurs-new-curbs-foxconn-imposes-restrictions.html "China’s COVID resurgence spurs new curbs, Foxconn imposes restrictions") before Christmas to control the spread of COVID-19.

(Reporting by Saikat Chatterjee; editing by Jason Neely)


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