Foreign exchange traders monitor screens in Tokyo, Japan. Picture: GETTY IMAGES/CARL COURT
“An escalation of European Covid-19 restrictions in response to fears about a new variant, which is supposed to be faster spreading, should, and did, of course, elicit a negative reaction from prices via the near-term global growth impact,” said Stephen Innes, chief global market strategist at Axi. Countries across the globe shut their borders to Britain on Monday due to fears about a new strain of coronavirus, said to be up to 70% more transmissible than the original, causing travel chaos and raising the prospect of food shortages days before Britain is set to leave the EU.
Oil prices dropped on expectations of lower demand, with US crude recently down 0.33% at $47.81 a barrel, while Brent was 0.2% lower at $50.81.