European session review: GBP under pressure amid persistent concerns about fast-spreading coronavirus

GBP fell against its major rivals in the European session on Monday as persistent concerns about fast-spreading coronavirus continued to weigh on the investors' sentiment. 

According to the latest information, the global coronavirus death toll passed 3,000 with more than 88,000 people infected. In the UK, the total number of confirmed coronavirus cases amounted to 36. 

The Organisation for Economic Cooperation and Development (OECD) warned that the coronavirus outbreak could cut global economic growth in half. The organization lowered its projection of global GDP growth for 2020 to 2.4% from 2.9% it forecast before the outbreak took hold, but noted that a “longer lasting and more intensive coronavirus outbreak” could slash growth to 1.5 percent.

The Bank of England (BoE) stated on Monday that it is working with international partners and the UK's finance ministry to ensure "all necessary steps are taken" to offset the economic hit from coronavirus.

Market participants also received final data on UK manufacturing Purchasing Managers' Index (PMI) and mortgage approvals.

The latest survey from IHS Markit revealed the UK's manufacturing sector grew at the fastest pace in ten months in February, due to a continued recovery in domestic demand amid reduced political uncertainty. The IHS Markit/CIPS UK manufacturing PMI increased to 51.7 in February from 50.0 in January. However, this was below the earlier flash estimate of 51.9. The PMI posted above the 50.0-neutral mark for the first time in ten months and pointed to the biggest gain in factory activity since April of 2019.

Meanwhile, a report from the Bank of England (BoE) showed that mortgage approvals for house purchases rose to the highest level in nearly four years in January. According to the report, mortgage approvals increased to 70,888 in January from upwardly revised 67,930 in December. This was the highest level since February 2016 and above economists' forecast of 67,900. At the same time, consumer credit increased GBP 1.23 billion in January, following an upwardly revised GBP 1.34 billion advance in the previous month and above economists' forecast of GBP 1.10 billion. The annual rate of growth in consumer credit remained unchanged at 6.1 percent in January.

Investors are also fretting about post-Brexit trade talks, set to begin today, and whether the UK's budget, planned to be delivered on March 11, will include much more spending, which many market participants say is necessary to boost the country's economy.