The Pound (GBP) initially gapped to the downside at the open on Sunday, after a scare with the British Prime Minister Boris Johnson.
Reports hit the newswires that Johnson had been hospitalized, given his ongoing battle with Coronavirus. The headline was enough to spook the markets and force GBP weakness, inviting the noted gaps. Additional pressure started to be seen in early trading, as sources were reporting that he was even having to require a breathing machine.
Further details started to eventually come out reassuring that the trip to the hospital and spending a night there was just a precautionary measure. It was due to the fact that he still had symptoms, which was not out of the norm, but you can never be too safe.
The reason the pound would sell-off on something like this like any country would is down to much uncertainty, of which markets do not like.
GBP at the time of writing has recovered its initial drop versus the USD and is trading in minor positive territory. Decent gains versus JPY are seen, simply down to the broad Yen weakness overnight, as Japan declares a state of emergency.
In terms of GBP/USD, it is seen retesting a breached range that occurred on Friday. The price was moving within a range of 1.2480 down to 1.2350 between 30 March - 2 April. A flush of momentum to the downside had come into play, which is now being retested on Monday.
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