LONDON: Sterling strengthened against the euro on Tuesday but stayed within recent ranges as uncertainty around the Omicron variant of COVID-19 limited the market impact of strong UK jobs data.

Since the first Omicron cases were detected on Nov. 27 in Britain, the UK has imposed tougher restrictions. But Prime Minister Boris Johnson faces a large rebellion among his Conservative lawmakers in a parliamentary vote over the measures later on Tuesday.

On Sunday, Johnson said that Britain faces a “tidal wave” of the variant and on Tuesday he warned ministers that there will be a “huge spike” in cases.

The pound fell on Monday due to Omicron fears but on Tuesday recovered to 85.18 pence per euro at 1653 GMT.

Versus the dollar, it was up 0.1% at $1.3228, pushed higher by a slip in the dollar. However, the dollar was still near one-week highs, supported by its role as a safe-haven currency, as well as expectations that the US Federal Reserve would be hawkish at its meeting this week.

The spread of the Omicron strain has raised fears of an economic slowdown, prompting investors to bet against the Bank of England raising rates at its meeting on Thursday.

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