GBP has taken another beating in the session, with no thanks to the big flights into the greenback being observed. Markets continue to push chunky flows into the U.S. Dollar, as a safe-haven option.
There are several factors that are very much stacked up against and weighing on sterling. The Coronavirus which of course is harming many economies, but large outflows of GBP are being seen. Historically, sterling has been sensitive to global investor meltdowns, as being seen, with GBP/USD falling to its lowest levels seen since 1985.
Markets are also somewhat underwhelmed with the current response to Coronavirus, the steps have been very slow in comparison to some of its peers. As PM Johnson noted, he is expecting a huge pick up in cases, but yet the country has not taken strong actions as of yet in trying to contain.
Elsewhere, the growing expectation for a fresh bout of quantitative easing from the Bank of England is hurting GBP. Given all of the efforts taken across the pond by the FOMC, markets are anticipating the BOE takes similar action.
Lastly, in the background, the latest Brexit developments look to be pushing the chance of a negotiated deal further into the future. Remember, Boris Johnson said by the end of 2020, Britain leaves deal or no deal. He may at some point need to update his view on this, given current circumstances, because this, of course, is a huge GBP negative.