A Promising Week for One Currency – and a Challenging One for Others
Posted by Allison on 29 October 2012, 16:00
Welcome back to another regular weekly currency report, which should give us an idea of how well (or badly) the British pound has been doing on the currency markets in the past week. Would it be a winner or a loser this time around? Let’s find out.
An overview of the currency markets for October 22nd – October 26th 2012
Let’s get the week underway with a look at the British pound and its standing against the US dollar. The opening rate was 1.6038 and there was only a marginal difference on day one. However the second day saw the pound drop to 1.5983 before perking up again to 1.6011 the following day. Clearly there was no significant sign of how the week would end, although we had good news in the end as the pound finished on a better 1.6110.
Next stop is the Euro, where the pound finished the previous week on 1.2303. This dropped to 1.2277 at the end of day one, but there was a small reprieve the day after as the pound improved to 1.2290. In fact this would turn out to be the beginning of the good half of the week, because by the time the week was over the pound had an exchange rate of 1.2481 against the European single currency.
Moving on to the Hong Kong dollar, the pound began the week on 12.430 here. Again we saw a marginal drop on the first day, but this was followed by an even bigger one the following day, as the pound hit a low of 12.387. And yet two days later things were very different again, as the exchange rate had bounced back -up to 12.510. The final rate – 12.486 – was very good too.
So let’s see what happened against the New Zealand dollar now. Here the pound opened on 1.9575 and as opposed to its performance against the other currencies, it did well on the first day, rising to 1.9609. The next day saw another improvement to 1.9666, so it was clear things were looking up here. The last couple of days were a little up and down but the closing rate of 1.9645 was very good considering the overall picture.
Finally let’s see how things progressed against the Australian dollar. The opening rate was 1.5485 and this improved to 1.5539 on day one. There was another marginal improvement the next day, and in fact the pattern was very similar to the one we had seen against the New Zealand dollar over the same week. So the resulting closing rate of 1.5584 was rather good for the week, which was a good one all round for the British pound.
Notable events in the world of currency
The pound does well against the Canadian dollar
This week the pound bounded up from 1.5853 to 1.6057 against the Canadian currency.
Another good result against the Swiss franc
Here the pound began the week on 1.4869 and ended it rather better off on 1.5089.
Three out of three with another good result against the Icelandic krona
Here the pound managed to climb from 198.829 to an impressive 205.337 by the time the week was over.
As you can see the week was encouraging to say the least, as far as the British pound was concerned. It seems rare that we get a result that goes right across the board in such positivity, and yet this week looked that good. Of course just because we had such a good week this time around, it does not mean it will be the same next week. We must just wait and see how things turn out, to see whether the pound will be able to sustain this good performance, or whether there are other things in store.
Either way, we shall be back with the results next week. Don’t miss the opportunity to see what happens next.