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Coronavirus update: Italy detects UK’s new strain, Ontario sees full X-mas lockdown

Heading into the Christmas-holiday shortened week, the concerns over the coronavirus contagion have intensified, especially after a new covid strain was found in the UK.

Italy announced late Sunday that it had confirmed a COVID-19 case in the country, which had the new variant detected in England.

UK PM Boris Johnson described the variant as up to 70% “more transmissible”
and other UK authorities describe as “out of control”. The government imposed a strict Christmas lockdown in London and southeast England. Meanwhile, European countries began closing their borders to travellers from the UK.

Across the Atlantic, Ontario province in Canada is expected to impose a wide lockdown on Christmas Eve, Globe and Mail reported, citing unnamed multiple sources.

Additional details

“Premier Ford set to announce the lockdown on Monday, details have not yet been finalized.” 

“As of Sunday evening, Cabinet had decided to impose a four-week lockdown on the southern and eastern parts of the province effective Dec. 24 at 12:01 a.m. That will include the Toronto area and Ottawa.”

Market reaction

The risk-off sentiment is at full steam in Asia due to the resurgent coronavirus concerns, which has overshadowed the positive news of the US stimulus deal passage.

The safe-haven US dollar is heavily in demand, weighing on the riskier assets such as the aussie, S&P 500 futures and oil.

The pound is the worst performer across the G10 fx space amid the Brexit impasse and virus-led fresh lockdown. GBP/USD is nearing 1.3300, down over 1% on the day.

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