A Mixed Bag of Drama for the British Pound
Posted by Allison on 29 November 2016, 15:17
Welcome back to our next currency report, exploring how well (or not) the British pound is doing on the currency markets. Let’s see how this week played out.
An overview of the currency markets for November 14th – November 18th 2016
A fresh week for the British pound, then, and this time we began on 1.2659 against the American dollar before dipping over the first two days. This brought us down to 1.2425 by the time Tuesday night arrived. We were concerned how the rest of the week would pan out, but the next two days were more encouraging. They didn’t regain the losses, but they did bring the pound back up to 1.2453, which was better than nothing. Unfortunately, we experienced another drop on Friday, which was enough to take us down to the lowest rate of the week – 1.2328.
With that pattern evident against the US dollar, we were expecting a drop against the euro too. However, the first day was more encouraging, as we rose from 1.1609 to 1.1629. Only a small rise, but unfortunately it was more than wiped out the following day as the pound fell to 1.1542. This would not be a smooth journey, and we saw this was the case by the time another two days had passed, although we did better here by rising to 1.1620 against the euro by Thursday night. Once again, though, we had a fall on Friday and this meant we finished in a weaker position on 1.1598.
Over now to the Hong Kong dollar, where the pound began trading on 9.8212 this week. We ended up experiencing the same pattern here that we had against the US dollar, with two falls in the first two days, this time taking us to 9.6382. But then, we had two good days and this meant the pound recovered some of its losses – but not all. We finished Thursday evening on 9.6604. Finally, Friday saw another loss, which meant we finished on 9.5629 for the week.
Over to another part of the world now as we explore the exchange rate between the New Zealand and Australian dollars. Let’s head to New Zealand first, where the pound started on 1.7604 before finishing Monday in a better position on 1.7669 against the Kiwi dollar. We dropped significantly to 1.7479 the next day, though, before recovering on Wednesday to close on 1.7627. Finally, though, the dollar was too strong for the pound and that meant we ended up dropping way back to 1.7482 to finish the week in disappointing fashion.
So, did we have something similar in store for us against the Australian dollar? Well, we opened on 1.6646 and had two days of drops, taking us down to 1.6436 by Tuesday evening. You would be forgiven for predicting two good days now, as we’d experienced this elsewhere. You would be right, too, as the pound was up to 1.6685 by Thursday night. We did fall back to 1.6674 by Friday evening, but this was better than Monday’s opener, so we did do fine here at least.
Notable events in the world of currency
Steady falls against the Canadian dollar
This week was not good in this part of the world, as the pound started on 1.7079 against the Canadian dollar before dropping back to 1.6661.
A slight drop against the Swiss franc
There was more bad news here, but not as significant as we had seen elsewhere. We dropped from 1.2459 to 1.2423 over the course of the week.
More of the same against the Icelandic krona
The story kept on repeating as we dropped against this currency as well. We began the week on 141.539 before falling back to 140.008.
As we can see, the pound was not in a good place this week. Even when it did do well, it could not sustain the pattern for the entire week. This meant we ended up with some disappointment – something we hope to reverse next week.