GBP traded mostly lower against its major counterparts in the European session on Monday. While the pound rose against NZD and was changed little against USD, it eased off against the rest of major rivals.

Market participants fixed their attention on reports of rising coronavirus cases in several countries, including Italy and Spain, which triggered the re-implementation of containment measures. Spain and Italy imposed new restrictions to stop the spread of the coronavirus, which include the closure of nightclubs. Italy also made it compulsory to wear a mask outdoors in some areas at night, especially around pubs and bars.

An upcoming new round of the UK-EU trade negotiations, which is to start on Tuesday, also weighed on the pound. Britain's chief Brexit negotiator David Frost stated last week that the UK wants a deal with at its core a free trade agreement like the one the EU has with Canada. He also suggested that the agreement with the EU can be reached in September. 

Meanwhile, escalating U..S.-China tensions dampened the risk sentiment. Reuters reported that the Trump administration is to tighten restrictions on Huawei and to prevent it from obtaining semiconductors without a special license. The announcement came after the U.S. president said on Saturday he could exert pressure on more Chinese companies, operating in the U.S. market, such as technology giant Alibaba (BABA) after he ordered China's ByteDance to divest the U.S. operations of TikTok within 90 days on Friday.