Britain at a “Critical Point” Amidst Coronavirus Pandemic 

Prime Minister Boris Johnson is in favor of a second lockdown which may be needed to stop the continuous spread of the disease.  

Chief Medical Officer Chris Whitty plans to sound the alert, saying U.K. data are heading in the “wrong direction”, according to a preview of remarks prepared for a public briefing. 

Mayor Sadiq Khan will recommend tightened rules for the capital on Monday, LBC radio reported. 

Johnson’s government has been underscored by Whitty’s comments, which is trying to keep infection under control without damaging their economy that fell compared to the economy of other developed countries during the pandemic.  

With the daily cases rising at the highest level since May, Health Secretary Matt Hancock said Sunday that national restriction will be re-implemented unless people will comply with rules and limit gathers up to six people max.  

London office workers may also be considered to start working from home to reduce risk of the disease to spread in workplaces. 

The government also reinforced fines for people in England who refuses an order to self-isolate. For people not complying with the rules, they can be fined as high as 10,000 pounds ($12,917). 

A new legal duty requires people tested positive for the test of COVID-19 to self-isolate starting September 28. 

On Saturday, the government reported 4,422 new COVID-19 cases. 

With the current rise in cases, local restrictions in the north and midlands could be extended to London where infection rates are the highest. 

There are also reports that ministers are considering a two-week national lockdown in October as a virus “circuit breaker”. Hancock once again refused to rule out any option, but insisted country-wide measure were a “last line of defense.”  

TECHNICAL OUTLOOK 

 

In the daily charts of GBP/USD, the pair opened at 1.2924 on Monday morning in Asia session.  

The GBP/USD pair was up 0.26% to 1.2949, although continued uncertainty over Brexit and a spike COVID-19 cases in Europe capped gains. 

One of the reasons why GBP is gaining against the U.S. dollar is due to lost in investor confidence in the U.S. dollar. The dollar suffered losses ahead of the Fed’s speech later in the week and speculations of investors looking back on the dollar as a safe haven is less likely to happen anytime soon. 

Foreigners have been heavily buying on CNY and JPY as of the moment and further pushing the U.S. Index lower. This gives the GBP leverage and push the price higher for sterling bulls.  

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