GBP/USD Slides Lower After PM Johnson Hospitalized Due to Coronavirus
Arslan Butt • 1 min read
Early on Monday, the Sterling has started the week by posting a decline against the dollar and the euro after news reports of PM Boris Johnson’s hospitalization after having contracted the coronavirus infection. At the time of writing, GBP/USD is trading at around 1.223.
Sterling holders and traders are worried about the implications of this latest development on the British economy and the currency, with the leader suffering from the pandemic that the government is trying hard to fight and contain. According to official reports, Johnson was hospitalized after he continued to experience COVID-19 symptoms even after 10 days of treatment.
So far, Britain has confirmed over 47,000 cases of coronavirus while the number of dead has crossed 4,900. The UK government is expected to enforce stricter shutdown and social distancing measures in the coming days in a bid to contain the spread of infections.
In recent weeks, GBP/USD has seen considerable weakness as investors opted for the safety of the US dollar in anticipation of the heightened uncertainty and risks of a global economic recession. In times of uncertainty, currencies like the GBP are considered riskier instruments to own.