GBP Tumbles Following Fresh Coronavirus Restrictions

Thursday 9th December 2021 – 07:17 (GMT)

The pound fell 1% against all G10 currencies following fresh coronavirus-related restrictions proposed by the UK government on Wednesday evening.

Prime Minister Boris Johnson outlined his “Plan B” strategy to the House of Commons against a backdrop of growing concerns over the spread of a more potent Omicron variant of the disease.

A reintroduction of working from home for a majority of the UK workforce is now planned, along with mandatory face masks to be worn in public indoor spaces. Vaccine passports will also be required to gain access to nightclubs and large public venues whilst more contact testing will be needed when positive cases arise.

There is no guarantee however of the proposed restrictions being passed into law with many Conservative party members unhappy with the plan. The UK PM will be relying on votes from allies on the other side of the floor, with many still reeling over recent revelations regarding a Number 10 party held during the height of the pandemic last year.

Boris Johnson will be under increasing pressure should further revelations come to light regarding the flouting of restrictions by his party members and the pound could be under further pressure as a result.

Attentions now turn to tomorrows UK GDP reading for October with analysts expecting a 0.5% increase in productivity during the month.