Posted by Allison on 16 November 2009, 11:36
The pound has struggled against lots of different currencies over the past year or more, and that is why it is interesting to focus in on a few select ones from time to time to see whether that pattern has changed. It hasn’t all been bad of course, but the pound still remains a lot lower than it has in the past.
So how did it fare on the currency converter against the Canadian dollar during October?
Back at the close of the first day of the month it was on 1.7127, but by the following day when the week ended it had managed to up things slightly to 1.7287.
Where would things develop from there though? Was this to be a good month for the pound overall, or would the Canadian dollar kick in and take the best results?
The following week certainly saw the dollar taking charge, with a low point a couple of days in of 1.6808. The pound then managed to claw back some of its losses to end up on 1.6977, before sinking down to 1.6685 the very next day. Could this loss of nearly three cents overnight signal a bad month overall for the British pound, or was there more in store?
Unluckily for some – particularly the pound – the low point of the following week took place on the 13th. And that meant an exchange rate of 1.6271 for the pound against the Canadian dollar. Luckily though the tables were turned throughout the rest of the week, and if we thought we were in for a bad time that didn’t turn out to be the case. By the time everyone was heading home after an active week of trading, the exchange rate was changed to 1.6954. That was a huge jump up of nearly seven cents from the low point a few days before, which gave us hope that the month would turn out better than we might have hoped.
And in fact the following week saw a high point of 1.7502 – a very impressive total – before losing some of the ground it had made up. The British pound still managed to finish on a healthy 1.7233 though, so there was little to worry about overall.
We were coming to the end of the month now though, so it was crucial to try and keep up those good results to make it a success for the British pound overall. A weaker pound might be good for the economy in some ways, but there is still something good about seeing it perform well against other major currencies.
And indeed the pound went from strength to strength from that point on, as the month finished up a resounding success on 1.7848. That meant it had added on over seven cents on the whole, so the Canadian dollar clearly had something to think about as the month came to a close.
But will it manage to fight back against the pound next time? We’ll see.