Fundamental analysis: The UK is facing a new strain of the emerging coronavirus, and the pound is dropping

 The British Minister of Health recently revealed that a replacement, more contagious strain of the Covid-19 virus has been found within the UK, which has prompted the British government to impose additional restrictions, including tighter lockdowns. It remains unclear whether or not the new strain has reached the remainder of European countries, although Italy and South Africa have already announced their first cases.

 Prime Minister Boris Johnson said: "We try to understand more that as we proceed, but we already know enough, and quiet enough, to form sure we must act now." "When the virus changes the way it attacks, we must change our defense."

 the amount of cases within the UK has risen dramatically within the past few days, as this new variant has spread rapidly in London and therefore the South East of England. To date, the united kingdom has reported 2,040,147 new cases of coronavirus, additionally to 67,401 deaths. The vaccination campaign continues, while the Oxford / AstraZeneca vaccine remains being tested.

 After news of this new strain, many countries, including Canada, France, and Ireland, refused to limit travel from the UK, and European Union member states are thanks to meet soon to debate a joint response.

 It also remains unclear whether this new strain is more lethal or will affect the present vaccination campaign. consistent with experts, it appears that this strain doesn't differ much from the present strain, no matter the upper rate of transmission.

 The announcement of the new strain spread anxiety within the financial markets. In Asia, the markets were mainly in negative territory. Nikkei 225 fell 0.18 percent at the top of the session, closing at 26714.42, while the S & P / ASX 200 index fell 0.08 percent to shut at 6669.90.

 By 9:00 GMT, the British pound was down 1.85% against the US dollar, reaching the 1.3270 level.

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