Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Pound Drops as England Readies for a Month-Long Lockdown

ForexNov 02, 2020 05:09AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Pound Drops as England Readies for a Month-Long Lockdown

(Bloomberg) -- The pound declined to the weakest level in a month on concern a lockdown across England would deal a painful blow to an economy already reeling from similar measures earlier this year.

Sterling fell as much as 0.7% to $1.2855, the lowest since Oct. 7, after Prime Minister Boris Johnson on Saturday announced the month-long restrictions amid concern that the coronavirus is spreading rapidly and the National Health Service risks being overwhelmed.

“Another lockdown is the worst-case scenario for the U.K. economy and the pound,” said Lee Hardman, a foreign-exchange strategist at MUFG Bank. “It will increase pressure on the Bank of England to deliver even more aggressive stimulus at this week’s policy meeting.”

Bloomberg Economics said the second lockdown will mean the economy contracts in the fourth quarter and that the BOE will increase its asset purchase target this week by possibly more than the 100 billion pounds ($129 billion) previously forecast. The central bank will decide on policy on Nov. 5, the same day the latest lockdown measures come into effect.

Several Factors

The shutdown is competing with a range of factors likely to influence the pound this week, from optimism about a breakthrough on Brexit trade negotiations with the European Union to the U.S. election on Tuesday. Uncertainty around the vote has driven the cost of hedging the pound over one week to its highest since April.

“I would expect that if it wasn’t for hopes of a Brexit trade agreement that the pound would be a lot lower,” said Jane Foley, head of foreign-exchange strategy at Rabobank, adding that a stronger U.S. dollar is exaggerating the latest move in the pound.

©2020 Bloomberg L.P.

 

Pound Drops as England Readies for a Month-Long Lockdown
 

Related Articles

Cuban peso in free fall against the dollar
Cuban peso in free fall against the dollar By Reuters - Jan 26, 2022 1

By Marc Frank HAVANA (Reuters) - The Cuban peso was trading at nearly 100 to the dollar on the informal market Tuesday, according to a trader and online trackers, a depreciation...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email