While the pound is under pressure, the euro remains stable against the dollar. The foreign exchange market is currently attentive to the spread of Covid-19 and its consequences on monetary policies.

While the pound fell, the euro remained stable against the dollar. Around 9:20 a.m. GMT (11:20 a.m. CET), the euro lost a meager 0.03% to 1.1872 dollars per euro. Lee Hardman of MUFG believes that the increase in the number of cases of the Delta variant could in particular lead the chairman of the United States Federal Reserve (Fed), Jerome Powell, who is due to speak on Wednesday, to adopt a less harsh tone to be able to dampen the strength of the US dollar in the short term. The dollar has been on an upward slope for a month, regaining almost 2% against the major currencies. The pound sterling lost ground against the single European currency (-0.21% to 85.62 pence) and the greenback (-0.26% to 1.3865 dollars). Commerzbank's Ulrich Leuchtmann sees this as a dim prospect of a Bank of England rate hike if the Delta variant spreads out of control in the UK.