A Reasonably Good Week in Store
Posted by Allison on 8 February 2016, 15:33
Another week has gone by, and now we have another set of results to bring you. Will the British pound be in better shape this week, and if so, how good will the news be? Let’s find out how things went on the currency markets last week.
An overview of the currency markets for February 1st – February 5th 2016
Here we are then, with another brand new week of trading to look into. The opening rate against the US dollar was 1.4291 and this immediately improved to 1.4302 by Monday night. It turned out to be the start of a prolonged period of good news as well, lasting up to Thursday evening. The pound was worth 1.4630 by this time, but there was still one more day of trading to go. While it dipped back to 1.4552 on Friday, it didn’t take away from the significant amount of improvement that had been seen against the US dollar up to that point.
After that good start, we wondered whether we could achieve something just as good against the euro. Here we began trading on 1.3087 before rising in value to 1.3274 by Wednesday evening. However, as you might guess, we then had two days of bad news against the European single currency. This took us back to 1.2991, which was lower than the original starting rate had been.
The pound didn’t start as well against the Hong Kong dollar, however. It began trading on 11.137 before dipping to 11.128 on Monday night. This did give way to three much better days though, which saw the pound rise to 11.394 by Thursday evening. While we experienced a drop on Friday, it was not big enough to take us back to where we’d started. Instead we ended up on 11.332.
Moving on to the fourth currency of the week, we can now see how the British pound performed against the New Zealand dollar. We opened trading on 2.1970 on Monday morning before rising to 2.2102 against the dollar. The pound was clearly having a much better week this week. However, while it rose to 2.2197 on Tuesday afternoon, the remaining three days were not as good. In fact, by the time we finished trading on Friday afternoon, the pound was worth 2.1636 – representing a loss of over three cents.
So could we do better against the Australian dollar or would there be bad news in store here as well? We began on 2.0138 on Monday morning and had three very good days to start the week. This took the British pound to 2.0554 by Wednesday evening. Although the next two days were not as good, and we lost ground as a result, we didn’t lose out on a result that was good overall. We finished up on 2.0244 by Friday night.
Notable events in the world of currency
A drop against the Canadian dollar
Things were not good in every quarter, as we can see here. The pound started on 2.0106 against the Canadian dollar before dropping to 2.0011 by the end of the week.
Another drop against the Swiss franc
Things weren’t that impressive here either. The pound began trading on 1.4584 before falling back to 1.4421.
Another slight drop versus the Icelandic krona as well
Here too, the news was not good. The pound began the week on 185.349, but eventually it closed things out on 184.627.
While there were good results to be found this week, it became clear that these results would not be available across the board. In truth, it is rare the pound will perform well against every currency we look at. However, there were some good results to be had this week, which we should celebrate as we find them.
The real question, however, is whether the pound can build on those results to create even stronger performances in the weeks ahead. As we already know, things are not that simple. Anything can happen at any time in the world of the currency markets.