A Struggling Pound Fails to Capitalise
Posted by Allison on 9 March 2015, 11:18
As you may have guessed from that summary, we have some challenging times to report on this week. Here we have all the latest information for you.
An overview of the currency markets for March 2nd – March 6th 2015
Our first foray into the currency markets this week will be, as always, with the position the pound was at against the US dollar. Our opening position was 1.5443 but this was soon eroded to 1.5392 by the day’s end. Unfortunately it was the start of a long slide that lasted all week, with no good results for us to report on at all. This meant that by the time Friday evening arrived and the markets closed for the week, the pound had fallen to a disappointing 1.5184.
We could not have expected a worse start than that. Would we see something similar against the euro now as well though? The picture started off in the same manner, as the pound slipped from its opening rate to 1.3740 on Monday. However from then on things took a turn for the better. In fact, the pound took firm hold of the exchange rates and got a better result every single remaining day that week. This meant that by Friday evening the pound was standing on 1.3850, which was rather better than the lack of progress we’d seen against the dollar.
Over to Hong Kong next, where the pound was seen to begin on 11.976 against their dollar. Unfortunately the pattern here would mirror that seen against the US dollar, with a drop in evidence every single day this week. The falls were steady but thankfully not too pronounced, although they still led to a disappointing closing rate of 11.780 by the time Friday evening came around. It was not the best performance by any standards.
Our fourth stop is with the New Zealand dollar. The pound opened on 2.0402, a fairly healthy rate, but would it stay in this region or drop back below the two dollar mark as it has done in the past? On day one it actually rose a little, closing on 2.0437 as a result. However another two days’ of trading saw the pound fall markedly to 2.0181 by Wednesday night. It did rise to 2.0379 the following day but unfortunately this was not enough to satisfy a good week on the whole. Indeed, in the end the pound fell again to stall on 2.0259 by Friday evening.
One final stop to make now, and that is as always with the Australian dollar. We opened on 1.9727 on Monday, and as occurred against the Kiwi dollar we had a good day to start with. This took us up to 1.9787. However with the exception of another moderately good day on Thursday, it was a fairly disappointing week all in all. The pound lost significant ground in fact, dropping to 1.9376 by Friday evening.
Notable events in the world of currency
A drop against the Canadian dollar
We have already seen disappointing news elsewhere this week, so a fall against the Canadian currency won’t be a surprise. The pound fell from an opening rate of 1.9229 to 1.8927 throughout the week.
Good news against the Swiss franc
There were good results last week though – you just had to search hard to find them. Here the pound managed to go from 1.4613 to 1.4819 throughout the week.
Another rise against the Icelandic krona
Here too we had better news. The pound began the week on 205.075 and finished it on 205.700.
So it was a tough week for the British pound this time around. Will we end up with another rough week next week, or will we have a better performance to look forward to? There is no way of telling which way things will go, so we shall be back soon to report on the latest movements to determine what the important answers are. Make sure you come back for them soon.