A Tussle for Power Between the British Pound and the Swiss Franc
Posted by Allison on 16 June 2012, 06:31
By the time April closed between the British pound and the Swiss franc, the pound was sticking to a rate of 1.4783 against the Swiss currency. The question was whether this would go up or down during May.
On the first trading day in May the exchange rate did go up slightly in favour of the pound to 1.4799. We then had a more notable increase the next day that took us over the 1.48 exchange rate. Could we keep it up though?
The answer was no as we immediately dipped down to 1.4796 on the following day. This marked the end of the first week but the next week started in better fashion. On the 7th May the pound managed to grab back an exchange rate of 1.4894, and this crept up to 1.4897 the following day. The news got better still though as the pound kept pushing ahead and finally grabbed a better rate of 1.4920 on the 9th May.
Five days passed with the pound staying in a good position against the franc. There was better news still by the time the 14th was over, as the pound finished the day trading at 1.5012. The question now was whether the pound could hold on to the 1.50 exchange rate or whether it would slip back and end up further down and in a weaker position as well.
On the 17th we had our answer, as the pound unfortunately fell to 1.4998. Indeed things did not look good because by the 21st May the currency was even lower, on 1.4874. However the fall did not last long – just a couple of days – and then we saw another surge back upwards again. The week ending the 25th May was even better as the pound managed to attain the 1.50 rate again, on 1.5011. What’s more, it managed to hold out for the rest of the month and close on an impressive 1.5014 on the 31st. Clearly this was a good month for the pound.