The pound declined to the weakest level in a month on concern a lockdown across England would deal a painful blow to an economy already reeling from similar measures earlier this year. "Another lockdown is the worst-case scenario for the U.K. economy and the pound," said Lee Hardman, a foreign-exchange strategist at MUFG Bank. "It will increase pressure on the Bank of England (BOE) to deliver even more aggressive stimulus at this week's policy meeting." The central bank will decide on policy on 5 November, the same day the latest lockdown measures come into effect. Uncertainty around the vote has driven the cost of hedging the pound over one week to its highest since April.

Source: News 24 November 02, 2020 11:26 UTC