A Tough Week in Store for the British Pound
Posted by Allison on 17 November 2014, 18:20
Welcome to another currency report, although if you read the introduction to this article you’ll know this is not the best of welcomes. Let’s delve into the facts to see what happened this time around.
An overview of the currency markets for November 10th – November 14th 2014
Let’s begin with a look at the British pound against the US dollar, where it began the week on 1.5819 before rising impressively to 1.5901 on Monday alone. Could it continue this pattern for the remainder of the week? It looked unlikely, particularly when the pound fell to 1.5855 on Tuesday. It then experienced a series of drops throughout the rest of the week, until it finished up with the lowest rate of the week on Friday night. This was a disappointing 1.5654 – some considerable way off that good result we saw on Monday night.
Could we expect a similarly poor result against the euro as well? Here the week began on a rate of 1.2764, but Monday did not bode well, seeing the pound drop to 1.2735 by the end of the day. We did bounce back slightly on Tuesday, rising to 1.2761 as a result. However the remainder of the week was about as depressing as we’d seen against the US dollar. We ended up on a lower rate of 1.2588 as a result.
Over in Hong Kong the British pound started off on 12.265 and then improved to 12.331 by Monday evening. This soon changed though and we ended up following a pattern much the same as we’d seen against the US dollar. As such the pound slipped in value throughout the rest of the week. It ended up closing Friday evening on a disappointing 12.139 – some way off the high point we had seen on Monday night.
Our fourth stop is with the New Zealand dollar, where the pattern can sometimes be rather different from what we see against other currencies. Here we began on 2.0546 and we immediately dropped back to 2.0402. While we did put on a little the next day – rising to 2.0428 in the process – this didn’t last long. Instead we finished up closing on a very disappointing 1.9925 by the time Friday night came around. This was a whopping loss of over six cents across the entire week.
So far it had been a most disappointing week for the British pound. It did make us wonder whether we would end up with a complete set of losses. As you will see here, the result against the Australian dollar was far from impressive either. We began on 1.8404 and dropped to 1.8346 by Monday night. We did improve slightly to 1.8358 by Tuesday before dropping in value once again throughout the next couple of days. We did have a better day on Friday but even then we were not able to climb above 1.8046. Here too then, we had another depressing day.
Notable events in the world of currency
Another drop against the Canadian dollar
Here too there was bad news as the pound began the week on 1.8085 and ended it on 1.7818.
More disappointment against the Swiss franc
We also had some poor results against the Swiss franc, taking the pound lower in value throughout the week. We began on 1.5368 and ended it on 1.5124.
Ups and downs against the Icelandic krona
Here the picture was a little more dramatic, with ups and downs happening throughout the week. The overall trend was still down though, going from 196.609 on Monday to 194.685 on Friday.
It was a rough week to say the least. The British pound seemed unable to put up a stand against any currency last week, although perhaps we would have some better results next time around. Things can change remarkably in the space of a week and it would be good to have the chance to take back some of the losses we had experienced this time. We can but wait and see.