Posted by Allison on 25 October 2010, 11:58
Whenever you look at the currency performance of the British pound against any other currency you choose, you always want the pound to start from a position of strength. At least then you can hope for it to continue. If it starts from a position of weakness you will see that it has a mountain to climb before it can even begin to show strength.
Luckily the British pound was in the former position when it got going against the Canadian dollar last month. The opening rate for the pound was 1.6354, so it was quite well placed to begin with. Whether or not it could continue like this was another matter however.
The first few days of the month led us into that first weekend and as it turned out the first good result went to the Canadian dollar. The pound finished on Friday night with a figure of 1.6275 on the cards. But could it improve its position as the first full week got underway on the following Monday?
By the end of that day we had our answer, and it wasn’t a good one. The pound fell back to 1.5890 and we were concerned as to whether it could successfully recoup its losses and do better during the rest of the month. Just two days later though it seemed like a moot point, as we were suddenly staring at a rate of 1.6191 instead. How on earth could things change so quickly (and fortunately for the better) on the currency markets? It’s just the way things go sometimes, and luckily this time it went in favour of the pound.
It didn’t last long though because by the time another two days had gone by to mark the end of the week, the rate had slipped down to 1.5931 instead. Perhaps this would remind us not to celebrate too soon. Indeed the month was not over yet and perhaps the Canadian dollar had other ideas in store for the pound too.
The following week made it look as if the Canadian dollar was pushing the pound as hard as it could to succeed. But as it turned out the pound had the last laugh as it finished Friday evening on 1.6045.
The next week went much the same way, with the Canadian dollar making small inroads only to be pushed back by the pound again. But once again the pound seemed to save its biggest effort for Friday, as it finished up on 1.6170. Could it manage to add on some more to the exchange rate as we went into the last few days of the month?
The answer was yes, and although the Canadian dollar tried to fight back and knocked the pound down slightly for a day or two, the pound emerged victorious in the end. It managed to end September on a rate of 1.6364 all in all – and that was worth waiting for.