A Reasonably Good Week for the British Currency

Posted by Allison on 3 July 2017, 11:03

It’s time once again to explore the drama of the currency markets, and we have all the news you need. 

An overview of the currency markets for June 26th – June 30th, 2017

The British pound began the week on 1.2724 against the US dollar. So, it was good to have an encouraging start. This meant we rose to 1.2737 – a modest rise, but a good one nonetheless. We had an even better result the following day, as the pound pushed ahead to 1.2762. Would this be a week where every day was a success for the pound? Indeed, it would, and that was great news because by Friday night the British currency had risen steadily to close the week on 1.2978 against the American currency.

The question now was whether it could do the same again where the euro was concerned. The opening rate here was 1.1388 but we slid just slightly on day one, falling to 1.1385 as a result. Two more bad days followed, so by Wednesday evening we were looking at 1.1296. But the pound did manage to recoup most of the losses of the early part of the week, rising to 1.1372 by Friday night. At least that meant the losses were minimal overall, despite the poor start.

We were hoping for good news against the Hong Kong dollar, but would the pound follow the pattern seen against the American dollar? The opening rate was 9.9250 and we did get off to a good start, rising to 9.9344 by the end of Monday’s trading. And from there, things got better as the week went on. Yes, that means the British pound did once again achieve a success every single day, and it closed Friday’s trading on 10.129 as a result. That was an excellent result all told.

Now, we come to the relative uncertainty of the New Zealand dollar, and its counterpart in Australia, too. You can never tell if the currency is going to be a success here, or whether we will have different results to look at. The pound started on1.7476 against the Kiwi dollar, before rising to 1.7500 on Monday night. It then fell to 1.7461, wiping out most of the first day’s rises on day two. The following two days were better though, so the pound had risen to 1.7787 by Thursday night. Even a dip to 1.7688 did not ruin the entire week.

Finally, the pound started the week on 1.6814 against the Australian dollar. One good day took it to 1.6817 by Monday night, before falling to 1.6769 by Tuesday evening. But the pound put in a strong performance on Wednesday, which resulted in a closing rate of 1.6928 on that day. While the final two days were not so good, the pound still managed to end the week on 1.6889, and since this was better than Monday’s opener, we would count it as a success.

 

Notable events in the world of currency

A marginal drop against the Canadian dollar

Here, we managed a couple of good days, but they were outweighed by the bad. We began trading on 1.6836 before falling to 1.6813 by Friday night.

 

More encouraging results against the Swiss franc

The pound began on 1.2358 on Monday, before rising on all but one day to close the week on 1.2429.

 

Better news against the Icelandic krona, too

The pound started the week on 131.804 before rising on four out of five days, just as it had against the Swiss currency. By the end of the week, it stood at 133.048.

 

So, we have a largely-encouraging picture to look at this week. It remains to be seen whether we can carry that forward to next week as well, or whether we have more work to do to retain these improvements. You never know what to expect at present, especially with Brexit negotiations now taking place. We shall keep you apprised of the latest developments.

 

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