The Pound Sterling recovered in the overnight trading against the US Dollar on news that the Prime Minister was likely to shortly be returning to office. Boris Johnson, who announced nearly two weeks ago that he tested positive for the Coronavirus, had been hospitalized over the weekend for persistent symptoms of the virus. The UK Housing Minister had reported that the Prime Minister was improving and should be back at his desk shortly. News of the PM's hospitalization had sent the Pound close to a 1-week trough. Currency strategists say that if Mr. Johnson's stay in the hospital is extended, however, there will be concerns that his absence could create a leadership vacuum.
As of 10:33 am in London trading, the GBP/USD was trading at $1.2307, a gain of 0.3285% and off the earlier peak of $1.23230. The EUR/GBP was lower at 0.8777 Pence, a loss of 0.3723%; the pair has ranged from a low of 0.87646 Pence to a high of 0.88637 Pence in this session.
Yen Lower on Possible Lockdown in Japan
In Asia, concerns that the Japanese Prime Minister might soon announce a state of emergency has pushed the safe haven Japanese Yen lower against the US Dollar as well as the Australian and New Zealand Dollars. It was reported that Shinzo Abe may make a decision effective as of tomorrow in an effort to curb the spread of the Coronavirus infection. Health officials do not believe that the numbers of infected have peaked yet in Japan and that is why they are considering taking this extraordinary step to put the country on what is essentially lockdown. Globally, more than 1 million people have been infected with as many as 53,000 deaths reported. A number of countries have instituted lockdown procedures, including the UK, China, France, Italy and New Zealand. The USD/JPY was trading higher at 109.1950 Yen, up 0.69%; the AUD/JPY was higher at 66.33 Yen, while the NZD/JPY was up at 64.080 Yen.