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Pound-to-Euro Week Ahead: Charts Flag Rebound as Market Digests Gov's Aid Package


The Pound-to-Euro ratio has been competitive in the week and charts show a continued recovery in the coming days, despite trends in opposition to Sterling and a market decision on the government's latest steps to deal with the coronavirus's financial crisis this week.

Sterling was held on Friday following a series of weakening of the central bank to stabilize the global market despite suffering heavy losses that led to a new 35-year low against the Dollar and a new post-crisis crisis against the Euro. Price action took Sterling down to 0.0525 against the EU, a long-term ongoing penalty loss that left Sterling nursing a -7.9% decline by 2020.

The Pound will begin a new week of trading at 0891 and with major economic centers stopped due to Coronavirus measures.

The new low caused a "13 count" on the daily chart which indicates a drop is near immersion and this could mean that the integration period is likely to occur. 

Jones says that would be enough to raise the Pound-to-Euro ratio to 1.12 over the coming days, although he hopes to bring the peter out there and keep the trend against the British currency, eventually pushing it further. return to 2008 the lowest of 2008 in the next three weeks.

The technical outlook does not change the charts in line with the economic outlook, which took place one Friday when the government ordered the closure of free bars, cafes and restaurants in the hope of controlling the spread of the coronavirus. These measures will cost the economy significantly so Chancellor Rishi Sunak has announced financial support for trained companies and real estate even though the cost of solving the coronauus problem continues to grow at the Pound. 

Sunak said on Friday the government would close 80 percent of its paychecks when necessary if it would enable workers to keep jobs and not be put back on the ground because of distraction from efforts to cause coronavirus outbreaks. He also rejected the payment of VAT, the third largest source of tax revenue, to prevent permanent damage to the economy but the cost of dealing with convavirus is increasing rapidly and adversely affects budget deficits.

 Capital Economics estimates Sunak's announcement on Friday will generate more than £ 78bn, which will take the full cost of operating-related coronavirus to $ 110bn if 5% of GDP raises budget deficits significantly. Users' control over Sunak's actions will be central to Sterling's approach over the coming days, largely due to the potential impact they have on the already-massive UK account deficit. 

The current shortage of accounts means that Sterling relies on part of its value in continuing the breaking of foreign capital, inflips that have proved difficult.