Will The Canadian Dollar Prove Too Strong Against The British Pound?
Posted by Allison on 26 August 2010, 12:10
Back on the last day of trading in June, the British pound claimed a total of 1.5768 against the Canadian dollar. Since then we have seen some interesting movements between the two currencies on the currency converter, so we thought we’d cover them in this month’s report.
First blood during July certainly went to the British pound, as it managed to open proceedings by climbing up to 1.6165. It didn’t last long though as the following day saw it drop right back to 1.5768 again. Ironically it regained the rate of 1.6165 the day after that, before finishing off the week on the slightly lower rate of 1.6000.
This looked as if it was going to be an interesting tussle between the two currencies, and it certainly proved to be just that. The 13th of the month may be unlucky for some, and as it turned out it was unlucky for the British pound. It fell back to 1.5602 on that very day.
But what would happen next? Would we see another huge jump back up again?
We did as it turned out, but it would take a couple of days to get there. By the end of that week however we had finished on 1.6071. So we were once again on top of the Canadian dollar and looking to capitalise on it as well.
The 19th of the month saw the pound achieve a marginally better rate of 1.6111, which gave us confidence that we were indeed in the driving seat here. However pride does come before a fall and just two days later we finished up on 1.5824. We did pull back some ground before the week finished, leaving us on 1.5989, but we were eager to get back over the 1.60 level again if we could.
The next week did at least get us off to a better start as we achieved a rate of 1.6056. This took us through the barrier we wanted to break through, but the question now was whether we could stay there for the rest of the month. There wasn’t long to go but even just a day or two could be what the Canadian dollar needed to push us back down again.
And indeed it did just that the very next day. We finished up just under the 1.60 mark then as we crashed back down to 1.5965. The pound wasn’t down and out just yet though, and the day after it broke through again with a rate of 1.6057.
Indeed it seemed to have a new resolve at this point, because the penultimate day of trading for the month saw it achieve a rate of 1.6139. It slipped a little as it got to the finishing line, leaving it on 1.6114 to close out the month. But at least we’d finished on a good note, and indeed the month as a whole eventually went in favour of the British pound.