The pound fell sharply against the euro on Monday, while to fight against the unbridled progression of Covid-19, total containment was again decreed in the United Kingdom, which has just left the single European market.

Around 8:00 p.m. GMT, the pound lost 1.08% against the euro, at 90.35 pence for one euro, and lost 0.86% against the dollar, at 1.3554 dollars for one pound.

British Prime Minister Boris Johnson announced on Monday evening the return to "containment" for all of England to combat the spread of the new, more contagious variant of the coronavirus.

This new confinement, as strict as that put in place in the spring, provides for the closure of schools and must last if conditions allow it, until mid-February, announced the head of the British government during a televised address.

This news, anticipated in session, weakened investors' enthusiasm for the pound, "especially since Prime Minister Boris Johnson had warned that tougher measures could be taken", commented Fawad Razaqzada, analyst at Think Markets.

The United Kingdom is one of the European countries most bereaved by Covid-19, with 75,024 dead. Nearly 55,000 more people have tested positive for the virus in 24 hours, surpassing the 50,000 threshold for the sixth day in a row, according to the latest official data released on Sunday.

The British pound had nevertheless reached a record in two and a half years against the dollar a few hours earlier, at 1.3704 dollars for one pound.

"Will have to be wary of volatility as the effects of Brexit are not yet clear," OFX analysts warned.

After a quiet extended weekend, the concrete consequences of the exit from the single market and the customs union will be able to be observed this week.

“Investors with a long-term view are very happy to stay away from British assets,” said Ulrich Leuchtmann, analyst at Commerzbank.