Pound Falls As U.K. PM Boris Johnson Self-isolates Amid COVID-19 Exposure

The pound depreciated against its major opponents in the Asian session on Monday, as U.K. Prime Minister Boris Johnson was self-isolated after contact with Health Secretary Sajid Javid, who had tested positive for coronavirus on Saturday.

Although No 10 initially said that he would continue to work by participating in a pilot scheme, he later announced that he would be self-isolating as required.

Finance minister Rishi Sunak will also self-isolate after being in close contact with Javid.

Downing Street said that the PM will continue to conduct meetings with ministers remotely from Chequers.

The PM also defended the lifting of restrictions even though the country faces a new wave of COVID-19 cases.

Almost all legal restrictions will end from today, including an order to work from home.

The pound weakened to more than a 3-month low of 1.3713 against the dollar from Friday's close of 1.3756. The currency is likely to target support around the 1.34 level.

The pound touched near a 2-week low of 150.81 against the yen, down from Friday's trading close of 151.42. On the downside, 147.00 is possibly seen as the next support level for the pound.

The pound declined to a 4-day low 1.2632 against the franc and a 10-day low 0.8595 against the euro, compared to last week's closing values of 1.2651 and 0.8567, respectively. The pound may locate support around 1.22 against the franc and 0.88 against the euro.

Looking ahead, U.S. NAHB housing market index for July is scheduled for release in the New York session.

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