Pound Sterling recovered ground against the Euro over the course of the past 24 hours amidst news the condition of the UK Prime Minister's health is gradually improving and Eurozone nations were unable to agree a unified fiscal response to the coronavirus crisis.
The Euro could be set for fresh volatility over the course of the next 24 hours as the attention of the foreign exchange market turns to the meeting of European finance ministers, who have been tasked with finding a united fiscal solution to the economic crisis caused by the coronavirus pandemic.
The Pound-to-Euro rate extended its bounce off post-referendum lows last week, closing around one and a half percent higher for the period on Friday, and the charts suggest Sterling is now close to having risen as far as it's likely although improved risk appetite might continue to lift the British currency this week.
We are wary that the next week could see some further consolidation in Sterling, but critical to how Sterling performs will be the overall performance of global markets, as we have established market sentiment is a critical driver of Sterling in these coronavirus-impaired times.
The Euro fell to a two week low against the British Pound over the course of the past 24 hours and remains poised for further weakness, amidst the market's growing frustration over the Eurozone's inability to adopt a united approach to fighting the economic damage caused by the coronavirus pandemic.
The Pound-to-Euro rate closed its best week since September 2017 on Friday and the charts are flagging that period of consolidation is now likely, although the trajectory of the exchange rate will be determined more in the week ahead by investors' appetite for risk than it will anything else.
The British Pound advanced against the Euro on Thursday alongside a lift in global equity markets, as investors bet that global central banks and governments had done enough to minimise the negative economic impact of the coronavirus outbreak.