Pound hits five-month low against dollar, bitcoin drops amid Covid-19 worries – business live | Business


“As new cases have risen in the UK, exacerbating concerns about new lockdowns in the most vaccinated country in the Western world and what it would mean for the rest of the world, it becomes clear that the consequences of Covid-19 will stay with us for a while. .

These can include local bottlenecks, sustained pressures on the supply chain (and hence inflation), income volatility and the general macroeconomic environment as well as possible social tensions as governments struggle to increase. immunization levels. What is slightly remarkable is that concerns about the pandemic do not appear to be persistent, but rather operate on a risk / risk pattern. In March 2020, markets were passively monitoring Covid-19 in Wuhan and only panicked when the first European victim was reported. Similarly, the Delta variant has worried scientists for a few months, but the market action has been brutal

“The confluence of falling oil prices, concerns about the delta, expensive valuations and increased retailer participation in stock markets over the past year is a big part of what happened yesterday. The markets have ended another long period of very low volatility and, despite the positive rating at the end of yesterday’s session, we wouldn’t be too surprised if the correction persists for a while, until after ‘some of the speculation led by retailers is eliminated from the markets.

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