European session review: GBP mixed amid persisting coronavirus fears

GBP traded mixed against its major rivals in the European session on Friday. While the pound rose against USD and most commodity currencies, it fell against EUR and the safe-haven currencies.

The fast spread of the coronavirus remained the primary focus for market participants. The UK has reported 116 cases of coronavirus and one death as of Friday morning.

Meanwhile, the pound remained supported by the statements of the EU's Brexit chief negotiator Michel Barnier that a trade deal between the UK and the bloc was still possible this year, despite "very, very difficult" differences between two sides. 

In addition, the sterling continued to be underpinned by the decision of the Bank of England (BoE) to leave interest rates on hold for now in response to the coronavirus epidemic. While testifying before the UK's Treasury select committee on Wednesday, the incoming BoE's governor Andrew Bailey stated that he would wait for more evidence on the impact of the coronavirus before deciding on a move, rather than rushing to an emergency cut, dampening prospects for an immediate policy easing by the UK central bank. 

Market participants also await the first Budget of the Prime Minister Boris Johnson's majority government, which will be delivered by newly-appointed chancellor Rishi Sunak on March 11. PM's spokesman said earlier today that the budget would set out "considerable investment". Ha also announced that the national infrastructure plan would follow in months after the budget.