Sterling dipped against the dollar as rising U.S. Treasury yields put the U.S. currency in demand, with investors cautious about the easing of coronavirus lockdown measures in Britain.
As several countries moved to reopen their economies with a gradual easing of lockdown measures, risk sentiment recovered in markets, giving stock markets a boost.
British Prime Minister Boris Johnson will today give details of how to get the economy back to work, after his attempt to plot a nuanced exit from the coronavirus lockdown prompted confusion, opposition and even satire across the United Kingdom.
The government will publish 50 pages of detailed guidance at 1300 GMT, Foreign Secretary Dominic Raab said.
The BoE last week held interest rates steady at its meeting and announced no further stimulus, although it said it was ready to take further action to counter the coronavirus pandemic’s fallout.
Britain’s economy has reeled from the pandemic, while Brexit talks continue with little progress on major sticking points before a June deadline to agree on any extension of negotiations.
Retailers have warned the government that its business bailout package of reliefs, grants and loans will not be sufficient to stop the “imminent collapse of many businesses”.
First quarter GDP figures will be released for the UK on Wednesday this week.