A Stronger Pound in Evidence This Week
Posted by Allison on 2 September 2014, 10:40
Here we are then with yet another week’s worth of results to share with you. How well (or not) would things pan out for the British pound this week?
An overview of the currency markets for August 25th – August 29th 2014
Let’s begin with the position the British pound was in against the US dollar. On Monday morning it began on 1.6577 and we managed to achieve a little on day one by rising to 1.6589. However we were back down to lower levels the day after as the pound fell to 1.6571 to finish Tuesday’s trading. The highest result unfortunately came a little early for our liking on Wednesday, as the pound closed out on 1.6595. By the time another two days’ worth of trading had gone by the pound had finished up on 1.6582, but this was slightly better than the opening rate had been on Monday.
Over in Europe the pound started the week on 1.2495 against the euro. We improved here on day one, rising to 1.2568 in the process and giving ourselves a good cushion for the week. This was just as well because we dropped back to 1.2562 the next day before rising again to 1.2594 on Wednesday. We then spent the next two days slipping in value, although we managed to stay strong against the euro and closed on 1.2573 on Friday night.
Elsewhere in the world the pound had an opening rate of 12.847 against the Hong Kong dollar. Here we also had a good first day, rising to 12.857. Wednesday was also proving to be stronger during the week, because after a slight loss on Tuesday the pound was back to 12.861 by the mid-week point. Again though we saw nothing but losses for the final two days to close things out. We ended up going back to 12.851 on Friday, although this was still better than we’d started with.
Let’s move on to New Zealand now and the opening rate of 1.9701 for the pound. The first two days were rather good here, seeing the pound rise to 1.9885 as it went. We then had two days’ worth of falls, taking the pound back to 1.9782 by Thursday night. This improved to 1.9806 by Friday night though so once again we had a good result to celebrate.
Finally it was time to head over to Australia to see how things were progressing there. The opening rate was 1.7803 and while day one saw us progress to 1.7815 we then had three days where things did not go in our favour. Instead we dropped to 1.7720 by Thursday night before edging back up to 1.7758 – a lower rate than we’d had first thing on Monday morning.
Notable events in the world of currency
A significant drop against the Canadian dollar
Here there was something of a surprise as the British pound started the week on 1.8164 but ended up far lower on 1.7998 by Friday night.
Better news as far as the pound was concerned against the Swiss franc
Here we had far better news as the pound rose from 1.5119 to 1.5165 over the course of the week.
Another slight drop against the Chinese yuan
The pound lost some ground here but not too much. It began the week on 10.199 but then fell to 10.187 by Friday night.
So this was really quite an encouraging week for the pound as far as things went. It produced some good results all around the world against major currencies, and while not every result was excellent (take the situation against the Canadian dollar for example) the pound did do well.
It feels as though we have had to wait a few weeks to say something like that. Now it just remains to be seen whether we will have cause to say it again next week, or whether the pound will start to slip back and lose ground again. We shall be here with the results as quickly as possible.