European session review: JPY weakens as Japan’s PM Abe is to declare state of emergency Tuesday, GBP recovers as UK’s PM Johnson is expected to be back at his office “shortly”

JPY fell against other major currencies in the European session on Monday after Japan's Prime Minister Shinzo Abe told Japanese media he plans to declare the state of emergency in 7 prefectures to stop coronavirus on Tuesday. According to the PM, emergency will last about a month but it will not lead to lockdown steps like seen in overseas cities. The seven prefectures involved will be Tokyo, Osaka, Chiba, Kanagawa, Hyogo, Saitama and Fukuoka.

Abe also announced a larger-than-expected stimulus package of JPY 108 trillion to support households and businesses, struggling from the impact of COVID-19.

In addition, investors are awaiting the announcement of the details of a massive package of economic measures, recommended by Abe's ruling party last week, which are expected to be announced on Tuesday as well.

Japan's PM will hold a press briefing tomorrow at 10:00 GMT.

Meanwhile, GBP strengthened against most its major rivals, including USD, EUR, JPY and CHF, after the UK's housing minister Robert Jenrick said that Prime Minister Boris Johnson, who was admitted to hospital on Sunday night due to persistent symptoms of Covid-19, is "doing well" and is expected to be back at his office "shortly".