Asian session review: GBP mostly higher, despite threats of no-deal Brexit and lockdown

GBP was mostly higher against its major counterparts in the Asian session on Monday. While the pound changed little against JPY, it rose against the rest of major rivals.

Market participants seemed to be rather immune to the latest reports that the UK might be heading for a no-deal Brexit in three months. The final - the ninth - round of trade negotiations begin between the EU and UK are set to start on Tuesday, September 29. Ahead of the talks, Ireland's Prime Minister Micheal Martin hinted that the EU and the UK were heading for a no-deal Brexit. He noted that the UK Internal Market Bill had eroded the trust between the two sides and revealed that the Irish government was preparing its budget in three weeks’ time on the basis that there would be a no-deal Brexit. "That’s the basis on which we’re preparing the budget and we’re warning and alerting businesses to that terrible reality", he added.

Investors also continued keeping the focus on the Covid-19 developments in the UK. The official data released on Sunday revealed that another 5,693 people in the country were tested positive for COVID-19, bringing the total number of coronavirus cases to 434,969. Meanwhile, the coronavirus-related deaths rose to 41,988, the highest number in Europe. Last week, the UK's Prime Minister Boris Johnson announced a raft of new restrictions to keep the second wave of infections. However, the Times reported that the government was preparing to enforce a total social lockdown across much of northern Britain and potentially London to fight the disease. The UK's junior health minister Helen Whately stated today that the government did not want tighter restrictions but keeping an eye on the virus infection rate.