A Better Week for the British Pound all Round

Posted by Allison on 30 January 2017, 15:53

This week turned out to be more encouraging than its immediate predecessors. Let’s read more to see whether we could look forward to a good week all round.

An overview of the currency markets for January 23rd – January 27th 2017

As we approach the final few days of January, we are hoping for a more encouraging picture from the British pound. This week, it began on 1.2277 against the American currency, and enjoyed a strong start to the week, too. Indeed, over the first three days, it climbed each day until it reached a rate of 1.2590 on Wednesday afternoon. It did then experience two falls in the exchange rate to close the week, but these led to a closing rate of 1.2540, so this was still far better than we’d seen initially this week.

The question to answer now is whether we can bring you similar results against the euro. We began here on 1.1548 and immediately climbed to 1.1607 by the end of Monday. Unfortunately, we then dropped back to 1.1580 the following day. The pattern was not going to follow that of the dollar, but it didn’t mean we were in for bad results. Indeed, we sprang ahead to 1.1720 on Wednesday night, and further still to 1.1744 by Thursday. That meant a slight drop to 1.1741 on Friday didn’t dent the improvements we had made so far.

The pattern seen against the Hong Kong dollar did mirror that seen against its American counterpart, though. The pound began trading on 9.5256 here, before rising steadily to achieve a closing rate of 9.7679 on Wednesday night. Even though it then dropped back to 9.7303 by Friday evening, we had already done well to achieve gains throughout the early part of the week.

Things can be very different in other parts of the world, of course, but it soon became clear we would do well against the New Zealand dollar as well. The journey was not quite as smooth here as it had been elsewhere, with a good day on Monday taking us from 1.7196 to 1.7287 on day one. However, a fall to 1.7199 on Tuesday then meant we were on the back foot again. Two strong days then followed, ensuring we finished on 1.7374 by Thursday, before another slight fall took us back to 1.7290 by the end of the week.

Our final stop is in Australia, where the pattern we saw was nothing short of encouraging. In fact, the first four days all saw improvements for the pound over the Aussie dollar, growing from 1.6300 to 1.6683 by Thursday night. Even a fall back to 1.6636 by Friday evening didn’t dent the enthusiasm here.

Notable events in the world of currency

Only a marginal improvement against the Canadian dollar

We did fine here, but a starting rate of 1.6417 was whittled back to 1.6451 by the end of the week, despite better midweek gains.


Better news against the Swiss franc

We managed to do well here, rising from 1.2387 to achieve a closing rate of 1.2550 against the franc this week.


A steady rise against the Icelandic krona

Being able to rise from 139.208 to 145.888 against the krona this week was yet another good result to celebrate.

 

So, we have some encouraging results at last, and perhaps this would lead to better things in the future as well. Would we be able to keep this up, though? One week of good results is good news indeed, but establishing a pattern that would see the ongoing improvement of the British pound is another thing entirely. We hope to see better news, but for now, we can at least be encouraged that the British pound seems to be ending the first month of 2017 on a better note than it began the month on.

We do, however, have another two days’ worth of trading to do this month, so perhaps it is a little too early to celebrate just yet.

 

Comment