LONDON: Sterling was on track on Friday for weekly gains against the dollar and euro to start 2022, despite a mixed picture emerging for Britain's economy.
The currency has strengthened since mid-December in part due to the Omicron variant of COVID-19 proving less disruptive to the economy than originally feared, analysts have said, with the government only lightly tightening restrictions so far.
Sterling was on track for a 0.2% gain versus the dollar for the week and 0.8% up against the euro.
On the day, the pound was up 0.1% versus the dollar at $1.35560. Against the euro, it fell back marginally to 83.515 pence per euro.
Economic survey data this week showed Omicron has had an impact.
Survey data for Britain's construction sector on Friday showed growth cooled in December, falling to a three-month low.
A similar Purchasing Managers' Index (PMI) survey for the services sector on Thursday showed the biggest loss of momentum since the country was last in lockdown, falling to a 10-month low in December.
The pound has nonetheless broadly maintained momentum versus the dollar, rising from a one-year low of $1.31615 hit in December.
Investors will closely watch to see if the Bank of England will further tighten policy, with a further interest rate rise expected as early as next month after a surprise hike in December.
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