* Graphic: World FX rates in 2020 tmsnrt.rs\/2egbfVh<\/p>\n
* Graphic: Trade-weighted sterling since Brexit vote tmsnrt.rs\/2hwV9Hv (Updates rates)<\/p>\n
LONDON, July 12 (Reuters) – Sterling nudged lower on Monday with British Prime Minister Boris Johnson expected to confirm plans to remove nearly all remaining COVID-19 restrictions in England from July 19, despite a surge in cases to levels unseen for months.<\/p>\n
Sterling fell 0.1% to $1.3892 against the dollar by 1450 GMT, after jumping overnight to its highest in two weeks.<\/p>\n
Versus the single currency, it was flat at 85.43 pence.<\/p>\n
Johnson will announce his final decision to ease lockdown measures at a news conference on Monday. He is expected to eliminate rules on mask-wearing and social contact, and the instruction to work from home.<\/p>\n
Commerzbank analysts recalled that Johnson\u2019s move last year not to impose lockdowns turned out to be unsustainable.<\/p>\n
\u201cThe later the lockdowns are imposed, the stricter and probably longer they are,\u201d said Ulrich Leuchtmann, head of FX research at Commerzbank.<\/p>\n
\u201cIf that were to happen, the market\u2019s optimism that the Bank of England might dare a lift-off, i.e. the first rate hike, might be shattered somewhat,\u201d he added.<\/p>\n
The government argues that even though cases have surged, deaths and hospitalisations remain under control.<\/p>\n
Sterling has been among the top performing G10 currencies this year following Britain\u2019s quick vaccination rollout, which encouraged hopes for a quick economic recovery.<\/p>\n
More than 87% of adults have received at least one dose of a COVID-19 vaccine in Britain and 66% have received two.<\/p>\n
But investor confidence has been hit by a surge in COVID-19 Delta variant cases, which added to weaker-than-expected economic data in England.<\/p>\n
Data showed last week that Britain\u2019s post-lockdown economic rebound slowed sharply in May with gross domestic product growing by 0.8% from April, much weaker than the median forecast of 1.5% in a Reuters poll of economists.<\/p>\n
\u201cGBP bulls are finding it difficult to find motivation,\u201d said Jane Foley, head of FX strategy at Rabobank.<\/p>\n