Pound Falls As U.K. PM Boris Johnson Self-isolates Amid COVID-19 Exposure
July 18 2021 - 11:46PM
RTTF2
The pound depreciated against its major opponents in the Asian
session on Monday, as U.K. Prime Minister Boris Johnson was
self-isolated after contact with Health Secretary Sajid Javid, who
had tested positive for coronavirus on Saturday.
Although No 10 initially said that he would continue to work by
participating in a pilot scheme, he later announced that he would
be self-isolating as required.
Finance minister Rishi Sunak will also self-isolate after being
in close contact with Javid.
Downing Street said that the PM will continue to conduct
meetings with ministers remotely from Chequers.
The PM also defended the lifting of restrictions even though the
country faces a new wave of COVID-19 cases.
Almost all legal restrictions will end from today, including an
order to work from home.
The pound weakened to more than a 3-month low of 1.3713 against
the dollar from Friday's close of 1.3756. The currency is likely to
target support around the 1.34 level.
The pound touched near a 2-week low of 150.81 against the yen,
down from Friday's trading close of 151.42. On the downside, 147.00
is possibly seen as the next support level for the pound.
The pound declined to a 4-day low 1.2632 against the franc and a
10-day low 0.8595 against the euro, compared to last week's closing
values of 1.2651 and 0.8567, respectively. The pound may locate
support around 1.22 against the franc and 0.88 against the
euro.
Looking ahead, U.S. NAHB housing market index for July is
scheduled for release in the New York session.
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