The Pound Sterling was sharply lower during London trading on Monday after the Prime Minister set out what some are calling tough terms for the upcoming talks between the UK and EU. That has rekindled concerns that Britain could conclude the transition period without a workable trade agreement. Boris Johnson had said that the rules and regulations established by the European Union trade bloc would not be adhered to. The EU has said that Britain's success will depend on its abidance to labor and environmental regulations.
In London, the GBP/USD was trading lower at $1.3055 as of 11:10 am; the pair has ranged from a low of $1.30539 while the high was recorded at $1.32101. The EUR/GBP was up 0.8655% and trading at 0.8468 Pence, moving off the earlier high of 0.84789 Pence while the low was set at 0.83956 Pence in this trading session.
Coronavirus Worries Hit Risk Sentiment
Risk appetite is largely subdued across markets in the wake of a major rout in the Chinese equity markets. Travel restrictions and business closures in China as a result of the new outbreaks of the coronavirus are weighing on the Chinese economy. Analysts say that as the virus spreads, risk-related currencies like the Australian and New Zealand Dollars are also likely to come under pressure as a result. The AUD/USD was recovering from the session trough of $0.66827 and is currently higher at $0.6694, while the NZD/USD was up at $0.6463, off the earlier low of $0.64513.