30.03.202009:46:00UTC+00Pound Weakens As Economic Worries Intensify

The pound slipped against its major counterparts in the European session on Monday, as investors fear about the economic impact from coronavirus lockdowns to contain the spread of the disease.

Spain and Italy demanded a more vigorous response from the European Union as they fight surging coronavirus infections amid the continent's worst crisis since World War II.

Nine European countries have asked the union to share the burden of European debt, dubbed coronabonds, to help fight the virus, but the idea has met resistance from countries led by Germany and the Netherlands.

The United States has extended its set of social distancing guidelines until April 30 to slow the spread. In Italy, a national lockdown looks certain to continue beyond April 3.

U.K. Prime Minister Boris Johnson and Health Secretary Matt Hancock were tested positive for coronavirus on Friday. The death toll rose to 1,228 and the number of infections stood at 19,522.

The global rating agency Fitch cut the UK's credit rating from AA to AAA- with negative outlook.

Data from the Bank of England showed that UK mortgage approvals increased to a more than six-year high in February.

The number of mortgages approvals rose to 73,546 in February from 71,344 in January. This was the highest level since January 2014.

The pound declined to 1.2317 against the greenback, from a high of 1.2467 hit at 8:00 pm ET. The next possible support for the pound is seen around the 1.21 level.

The pound edged down to 1.1776 against the franc, after rising to 1.1872 at 8:00 pm ET. The pound is seen finding support around the 1.10 level.

The pound reached as low as 0.8988 against the euro, reversing from a gain to 0.8919 at 8:00 pm ET. On the downside, 0.92 is possibly seen as the next support level for the pound.

The pound held steady against the yen, after having fallen to 132.75 in the Asian session. At Friday's close, the pair was valued at 134.46.

Looking ahead, at 8.00 am ET, Destatis is scheduled to issue Germany's flash consumer prices for March.

U.S. pending home sales for February are due in the New York session.



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