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Pound weakens as markets begin to react to Europe’s UK travel bans | Business News



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The pound struggled overnight as Asian markets reacted to news that several European countries had closed their borders to the UK.

The European reaction came after a new strain of the coronavirus prompted parts of the UK to return to stricter rules aimed at limiting its spread.

Also reacting to the continuing lack of progress of a post-Brexit trade deal, the pound slid 0.8% to $1.34 and was down about 0.7% against the euro to 91.36p.

Prime Minister Boris Johnson is to chair an emergency response meeting on later today to discuss the virus situation, with fears that a French ban on freight from the UK could result in food shortages with just a few days to go before Christmas.

That, combined with the lack of a Brexit deal, to cut 1% from FTSE futures and 1.5% from EUROSTOXX 50 futures.

In the US, Senate Majority Leader Mitch McConnell said an agreement had been reached on a COVID relief bill worth about $900bn.

Rodrigo Catril, National Australia Bank’s senior currency strategist in Sydney, said: “The lockdown news and the stalemate on Brexit is keeping the market nervous.

“Dollar strength is largely being driven by the move lower in the pound.”



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Samuel Ridwan popularly known us BobzaR is a Web & App developer & a Social Media Influencer and a student in the University of Energy and Natural Resources, He love's to design, travel, outing, netflix addicted, social media adicted and etc.

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