A Mixed Bag on the Currency Markets
Posted by Allison on 29 June 2015, 14:25
Welcome to yet another report on the latest movements within the currency market that involved the British pound. Let’s get started and find out what happened.
An overview of the currency markets for June 22nd – June 26th 2015
The new week saw the British pound start with a rate of 1.5838 against the US dollar. Unfortunately the rate dropped on day one, albeit only by a small amount, down to 1.5825. Perhaps this was a small issue though and the pound would be back on course the following day. Actually this was far from what occurred. The first four days of the week all recorded a loss for the pound, taking it to 1.5725 by Thursday evening. It did perk up a little on Friday but it still ended the week on 1.5726.
The pound began the week on 1.4017 against the euro, and here too it had a disappointing first day when it fell to 1.3948. Good news on Tuesday though as the pound rose to 1.4082. Unfortunately this turned out to be a very unpredictable week as the pound rose and fell again over the course of the remaining days. It sank to 1.4033 on Thursday before settling on a better rate of 1.4039 on Friday – slightly better than it had started on.
So how would things pan out against the Hong Kong dollar? The pound started Monday’s trading on 12.277 before dropping to 12.267 on Monday night. However things got worse over the next few days and it would not be until Friday morning that we had some good news. Thursday night saw a low point of 12.190 and Friday saw an only marginally-better result as the pound stalled on 12.191.
Over in New Zealand the pound started trading on 2.2978 and had two excellent days to start with. This meant it closed trading on Tuesday night on 2.3068. However it then had two disappointing days and by the time Thursday night rolled around we were on 2.2749. We did then manage to regain some of our losses on Friday because the closing rate then was 2.2949, so at least we had got back (almost) to our opening rate.
Finally we can look at how the pound did against the Australian dollar. We opened on 2.0452 and immediately dropped to 2.0387. However we managed to put in a better performance on Tuesday as the pound got back up to 2.0473. This was then followed by two bad days as the pound dropped to 2.0315 by Thursday night. Was this another bad result? Actually no, because the pound truly did save the best for last here. It managed to close on 2.0540 on Friday night, which was much better than expected.
Notable events in the world of currency
A tiny victory against the Canadian dollar
The pound began the week on 1.9435 and ended it slightly better off on 1.9445.
More of the same against the Swiss franc
Here too there was a marginal increase for the pound. It started on 1.4646 and ended it on 1.4666.
A drop against the Icelandic krona
Here the pound didn’t have such a good week. It began trading on 208.176 and ended it on 207.503.
As we can see it wasn’t the best outcome for the British pound but it wasn’t the worst one either. The difference between the opening and closing trading positions of the pound were actually very slight. However there was a lot of action in between that left us wondering whether the pound would end up much lower in value than it had been at the start.
It remains to be seen whether the upcoming week will be good or bad for the British pound. However this week did show how uncertain five days of trading could be, even though it doesn’t seem to be a long time. We shall be watching to see what happens over the next five-day trading period.