Pound Slides Amid Virus Worries
June 29 2020 - 3:03AM
RTTF2
The pound fell against its major counterparts in the European
trading session on Monday, as rising coronavirus cases in the U.S.
and elsewhere raised fears about the re-imposition of lockdowns and
other containment measures.
Global coronavirus cases exceeded 10 million on Sunday, while
the worldwide tally of virus-linked deaths reached 499,124,
according to a running tally by U.S.-based Johns Hopkins
University.
The U.S. is the worst-hit country with over 2.5 million
infections, while its death toll exceeds 125,500.
Resurgence in cases continued to batter states like Texas and
Florida and some US states either delayed their reopening's or
reimposed shutdown again.
Data from the Bank of England showed that UK mortgage approvals
declined unexpectedly to a record low in May as coronavirus
pandemic weighed on housing market activity.
The number of mortgage approvals for house purchase fell to a
new series low of 9,273 in May. This was almost 90 percent below
the February level and around a third of their trough during the
financial crisis in 2008.
The pound dropped to 0.9149 against the euro, its weakest level
since March 26. On the downside, 0.94 is possibly seen as the next
support level for the pound.
The pound weakened to near a 5-week low of 1.2314 against the
greenback and more than a 3-month low of 1.1641 against the franc,
from Friday's closing values of 1.2329 and 1.1687, respectively.
The next likely support for the pound is seen around 1.19 against
the greenback and 1.14 against the franc.
The pound that finished Friday's trading at 132.20 against the
yen edged lower to 132.04. If the pound falls further, 127.00 is
likely seen as its next support level.
Looking ahead, at 8:00 am ET, German preliminary CPI for June is
scheduled for release.
Canada building permits and U.S. pending home sales for May are
set for release in the New York session.
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