GBP fell against most of its major rivals in the European session on Monday as worries about rising coronavirus cases in the UK and the pandemic's impact on the country's economy along with Brexit consequences outweighed optimism over the rollout of coronavirus vaccines. In addition, investors priced in the possibility that the Bank of England (BoE) might introduce negative interest rates as early as May 2021.

The pound fell against USD, EUR, CHF and JPY, changed little against CAD and AUD, and rose against NZD.

Speaking to BBC on Monday, the UK government’s chief medical advisor Chris Whitty warned that "the next few weeks are going to be the worst weeks of this pandemic in terms of numbers into the NHS". He also urged people to follow lockdown rules. Some media reported that the government was considering tightening lockdown restrictions. However, Whitty said the public should not wait for any government “tinkering” with rules.

Whitty’s comments came as seven new large-scale vaccination centers opened across England as part of the government’s plan to deliver the COVID-19 shots to all vulnerable people by mid-February.

Meanwhile, the U.S. dollar strengthened against its major rivals amid hopes that President-elect Joe Biden would support the coronavirus-hit U.S. economy with more fiscal stimulus. Biden pledged to lay out his proposals for further fiscal support on Thursday.