A Mixed Bag of Result for the British Pound
Posted by Allison on 12 December 2016, 14:27
This would turn out to be a mediocre week in many ways. We’ve collated the results from the currency markets so you don’t have to. Read on to get all the answers.
An overview of the currency markets for December 5th – December 9th 2016
So, when the British pound got started on the currency markets last week, it was with an exchange rate of 1.2623 against the US dollar. It managed to improve on this to begin with, as it performed well over the first two days. By Tuesday evening, we’d improved to 1.2746. Unfortunately, that figure became a distant memory by the following day, when the pound slid back to 1.2609 to close the day. Despite regaining some lost ground on Thursday, the pound couldn’t maintain that performance for another day. This meant it slid to 1.2579 by Friday evening.
Would we experience something similar against the euro too? We began trading on 1.1861 here before rising to 1.1881 on Monday night. There was a long way to go yet, though, and after two poor days to take us through to Wednesday night, the pound ended up on 1.1751. It appeared Monday’s opener was long since forgotten, but it turned out to be anything but. The pound managed to finish on a significantly better rate on Friday, which was 1.1913 – easily the best of the week.
Would we see something similar against the Hong Kong dollar as we had against the US dollar? The pound began on 9.7901 here before rising over the course of two days, much as we expected it to. This meant it was on 9.8859 by Tuesday night. The rest of the week was a mixed bag though, and there was no chance of the pound finishing better off than it had begun, unfortunately. Friday saw the currency finish on 9.7616.
New Zealand’s dollar presented yet another challenge for the pound. Starting on 1.7781, we did manage to climb to 1.7946 with one very good day on Monday. However, from that moment on it soon became clear the remainder of the week was going to be heading in a different direction. There was no other improvement to be seen at all, and by Friday night the pound had slid to 1.7567. It could have been worse still had we not had a very good day to start with, as this softened the blow.
Over in Australia, the pound was worth 1.7001 against the Aussie dollar. Again, we had a good first day by climbing to 1.7097, but then the rot set in again. It wasn’t quite as bad as we had seen against the Kiwi dollar because we did get a better result on Thursday, but overall we still lost a lot of ground this week. We finished on 1.6847 today.
Notable events in the world of currency
A fall against the Canadian dollar
We didn’t do well here this week because we managed to drop from 1.6793 to 1.6577 against the Canadian currency. Not the result we wanted, to be sure.
Better news against the Swiss franc
At least we had some good news here, as the pound climbed from its opening rate of 1.2752 to finish on 1.2814 by the close of play on Friday.
A slight drop against the Icelandic krona
Here too, we had bad news, although at least it was moderate and not too serious. The pound went from 141.597 to 141.341 today.
So, we can see this was a mixed bag of results that wasn’t too impressive for the British pound this week. We can hope for better news next week but in reality you never know what might happen next. With the holiday season fast approaching, and news about the progress of Brexit changing by the day, no one can guess what might happen next. It makes us wonder how 2017 will pan out for the British pound too.