A Stronger Week for the British Pound
Posted by Allison on 25 April 2016, 14:09
Welcome back to our next currency report. We’ve had some rough weeks in recent times, but would this finally be the week where the British pound started to fight back? It’s time to get some answers.
An overview of the currency markets for April 18th – April 22nd 2016
The question to begin with is whether the British pound would be able to put together a good week against the US dollar. There have been challenges throughout the previous few weeks, so would the same be the case this week? We opened trading on 1.4180 on Monday morning, and while we dipped slightly to 1.4171 by the end of the day, this was but a blip. We then had three strong days on the trot, which meant that by Thursday night we were in a much healthier position, with the pound worth 1.4429. We did slip slightly on the final day of the week, to 1.4377, but we were still in a better position against the US dollar than we had been on Monday morning.
So would we end up doing just as well against the euro too? We had a similarly disappointing day to start with, as the pound began trading on 1.2566 and dropped to 1.2534 at the end of Monday. However, we did have a better day on Tuesday, rising to 1.2662 in the process. It turned out to be an up-and-down week here though, instead of the fairly strong week we’d seen against the US dollar. Even though this was the case, the pound had two good days to end on, which sent it up to 1.2765 by Friday night.
With two good results in the bag thus far, could we add a third to the list by facing up against the Hong Kong dollar, too? Here we began on 10.999 and followed an identical pattern to the one we had seen against the US dollar. We dipped on Monday to 10.991, and then experienced three excellent days, taking us to 11.193 by Thursday night. We did drop again on the final day of the week, but at least we managed to finish on a stronger note once again.
Over to New Zealand now, and the pound got started on 2.0526 here. However, the first two days were far from impressive, as the pound dipped to 2.0420 by Tuesday night. We then had two days that were rather better, as the pound improved to 2.0665 by Thursday night. We did have one other encouraging surprise still to come though. Friday turned out to be the best day of all, and as a result, the pound finished on 2.0889 against the New Zealand dollar this week.
Finally, we have the Australian dollar to look at. Here, the pound began on 1.8407 and dropped to 1.8406 on day one. This was but a small decrease in value though, and the following day saw an improvement to 1.8419. Even though there was another drop on Wednesday, this was another small one, so there was really nothing much to worry about so far. The good news was the best was yet to come. By Friday night, the pound had improved to finish the week on 1.8599.
Notable events in the world of currency
Another improvement against the Canadian dollar
Here we had some more good news to enjoy. The pound began trading on 1.8265 this week, before increasing gradually to close things out on 1.8308.
Even better results against the Swiss franc
You may think we have seen good results so far. We have one better one here for you – as the pound soared from 1.3721 to 1.4030 against the Swiss franc.
Another step up against the Icelandic krona as well
Here too, we had some excellent news as the pound went up from 176.066 to 179.552.
So there you have it – one of the best weeks the British pound has managed in some time. Will we see another week like it next time, though?