Posted by Allison on 4 April 2013, 10:59
Welcome back to another currency report. This week we are dealing with a shorter four day week, owing to the run up to the Easter break. Would this have an effect on events in the currency markets? Let’s find out.
What would this week bring in terms of exchange rates for the British pound? Let’s find out now by focusing on the pound and how it performed against the US dollar. The opening rate was 1.5182 and this immediately perked up to 1.5189. However it then dropped over the next two days to stall on 1.5107. There would be no trading on Friday as it was Good Friday, but Thursday ended on a rate of 1.5153, down on where the pound had started the week.
Would it achieve a similarly disappointing picture against the Euro? Here the pound began the week on 1.1726 and the first two days went just as well as they had against the dollar, bringing the pound to a healthier 1.1778 as a result. However there was more good news to come over the next two days as well, since the Euro was having problems of its own. Here the pound managed to close out the shorter week before the Easter break with a rate of 1.1825 – very much improved over its opening rate.
Now let’s turn to the Hong Kong dollar to see what is in store there. The pound opened on 11.786 and by the next day this had increased slightly to 11.789. However this would be the best rate we could get all week, as the pound then started to take a turn for the worse. The lowest rate came on Wednesday as it hit 11.727 before recovering to 11.757 before the Easter break.
Our fourth stop is with the New Zealand dollar, and here the pound started on 1.8244. This would turn out to be a tough four days before the extended break, as the pound slipped to 1.8072 by Wednesday evening. Fortunately it recovered a little before the markets closed on Thursday night, but only to 1.8103.
Finally let’s see if the Aussie dollar would mirror the New Zealand dollar, or whether the British pound could do better in that region. The opening rate was 1.4554 and this immediately started dropping, falling to 1.4444 two days later. The British pound did start fighting back and it managed to recoup its losses and stand at 1.4555 by the time the week was over. So it was a mixed week all in all, as you can see.
Here the pound put in a poor performance as it fell from 1.5547 to 1.5398 over the four day week.
Here the pound did better, managing to move from 1.4319 to 1.4421 over the course of the shorter week.
Here too the pound performed well, rising from 188.296 to 188.523 by Thursday night.
So it was a tough week in many respects for the British pound. When we have just four days to work with, as opposed to a full week, it is always more difficult to achieve the results we want. Here we saw the pound was able to achieve some headway against the likes of the Euro – an important advantage in many ways – and yet it did badly against the US dollar. It is easy to see how difficult it can be to do well in some areas and not in others.
Next week will also produce four days of results instead of the usual five, owing to Easter Monday. We shall be watching to see whether the pound can capitalise on this, or whether it will struggle to do well over that period of time.