GBP/USD Weakens as BoJo Moved to Intensive Care
Aiswarya Gopan • 1 min read
GBP/USD experienced a slight dip over recent news reports about PM Boris Johnson requiring intensive care after his condition worsened, but has recovered slightly following a weakness in the US dollar. At the time of writing, GBP/USD is trading around 1.229.
In the previous session, GBP/USD lost around 0.3% of its value even as the British leader’s health deteriorated after hospitalization. Meanwhile, the decline was further boosted by gains in the US dollar as it rose to a two-week high and continues to hold around those levels.
Johnson was admitted to a hospital on Sunday after displaying no signs of improvement ever 10 days after testing positive for coronavirus. His condition deteriorated further, requiring him to be transferred into intensive care. Markets remain worried about how this impacts the functioning of the British government, although for now, Foreign Secretary Dominic Raab has been deputised to make up for Johnson’s absence.
Even though the risk appetite in the markets received a boost after the world reported a slowdown in the number of deaths from the coronavirus, GBP/USD has been unable to benefit over concerns about Johnson’s condition and the implications for the government’s efforts in tackling the pandemic and Brexit negotiations going forward.