Commodities and global markets decline sharply on fears over delta

The GBP/USD dropped further during the American session and bottomed at 1.3661, reaching the lowest intraday level since February. It then trimmed losses, rebounding toward 1.3700. Cable remains in negative territory, down almost a hundred pips, about to post the lowest close since March and for the first time in almost a year, below the 200-day moving average.

Risk aversion weighed on the sterling. Global markets are having the worst day of the year so far. European indices dropped 3% on average and in Wall Street, the Dow Jones drops 2.10%. The rush for safety weighed on commodities and boosted Treasuries. The 10-year yield fell to 1.17%, the lowest since February. Lower yields and risk aversion boosted the yen that is the best performer on Monday. The pound is being affected by risk sentiment. EUR/GBP trades at monthly highs above 0.8600.