- EUR / GBP remains slightly positive, supported above 0.9000.
- The announcement of the second lockout in the UK weighs on the pound.
- On the positive side, hopes of a Brexit deal underpin the GBP crosses.
The euro found support at 0.8995 earlier on Monday following a bearish reaction from intraday highs at 0.904. The pair has broken above 0.9000 again and is trading slightly higher on the daily charts.
Second UK lockdown hits pound
The pound traded lower against its main rivals on Monday, after British Prime Minister Boris Johnson announced the introduction of a second lockdown over the weekend. The sharp increase in COVID-19 cases, with daily infections exceeding 20,000, has sounded the alarm on the possibility of surpassing the worst-case scenario of 80,000 victims this winter.
Reports of the lockout have increased negative pressure on the pound which, nevertheless, remains underpinned by hopes of a trade deal with the European Union. The lack of any Brexit news, as both sides make last-ditch efforts to strike a last-minute deal to avoid an unfriendly divorce, keeps the GBP from falling further back.
On the macroeconomic front, the eurozone manufacturing PMI showed its best reading in 27 months, but with worrying and uneven expansion, with consumer goods producers feeling the impact of the pandemic, which warns of a further deceleration in as the impact of the interlocks is triggered. in.
The UK Manufacturing PMI presented a similar picture, with an upward revision in factory activity and a contraction in the production of consumer goods.