Due to new issues on the coronavirus crisis and Brexit, the pound has wiped out all gains this month.
Since the opening of trading earlier this week, the GBP / USD pair has recorded a significant drop of around 260 pips following reports of the discovery of new coronavirus strains in the UK leading to the closure of most of the country.
The international transport system was also affected after several countries began taking action to close the border to stop flights from the UK to curb the spread of the so-called faster virus.
Prime Minister Boris Johnson will chair an emergency meeting today, to discuss international travel and the flow of goods in and out of Britain in response to the new findings.
Adding to the concerns for investors is a new development on Brexit negotiations that is likely to push Britain out of the European Union (EU) without a trade agreement on 1 January 2021.
The UK stressed on Sunday that the EU needs to compromise to pave the way for a post-Brexit trade agreement, and so far no sign of a deal will be reached.
Meanwhile, the euro also recorded losses due to the resurgence of the US dollar, as investors switched to safe-haven following stricter restrictions.
The agreement reached in the US coronavirus stimulus package helped support the euro to record a slight increase at the start of the European session, but the currency depreciated again.
