A Week of Interesting Contrasts
Posted by Allison on 3 August 2013, 06:02
Here we go with another currency report that looks into how the British pound did on the currency markets last week. Would it produce a series of really strong results or would it slip back and end the week on a weaker note? Let’s find out.
An overview of the currency markets for July 22nd – July 26th 2013
Let’s see how the British pound performed as the week got underway. The opening rate against the US dollar was 1.5260 and this immediately improved to 1.5327 on day one. There were another couple of days of improvements as well following this, so things were looking good. There was a hiccup on Thursday as the pound dropped to 1.5285 but after that it perked back up again to close on 1.5399 for the week, so not a bad performance there.
Next up is the Euro, so could the pound achieve something similar here as well? The opening rate was 1.1628 and again we had a good start as the pound climbed to 1.1641 on Monday evening. Things were a little rockier after this though, as the pound then dipped and fell to a low of 1.1578 by Thursday night. Fortunately it did recover to close the week on 1.1613, although this was lower than the opening rate had been.
As far as the Hong Kong dollar was concerned, the pound began the week on 11.838. It then went through three days of healthy results, consistently climbing a little further each day and reaching a high of 11.912 on the 24th. It then experienced that Thursday drop again, this time falling to 11.857 before recovering to close the week on 11.945. There was something of a pattern developing here, although it was not as prevalent in some areas as others.
Let’s see how the picture developed against the New Zealand dollar now. The opening rate here was 1.9153 and we had a good start to the week when the pound shot up to 1.9324. As things turned out this would be the highest rate of the week because the pound then started to drop back in value. The lowest rate would come on Thursday – the lowest day once again – when we saw it close on 1.9014. When Friday arrived the exchange rate had perked up to 1.9110 again.
Finally we have the Australian dollar to look at. The pound began the week on 1.6559 and we immediately saw a climb to 1.6614 on Monday evening. Would this continue throughout the week? Actually the pound then fell back slightly to close Tuesday evening on 1.6599. After that it was back into 1.66 territory and the changes were much smaller on a day to day basis. By the time Friday evening arrived the exchange rate was settled on 1.6654.
Notable events in the world of currency
A tiny change against the Canadian dollar
Here the British pound made little progress. However it did manage to edge up from 1.5835 to 1.5838.
A small loss against the Swiss franc
There was a loss here, but fortunately it was fairly limited. The pound fell from 1.4374 to 1.4324 over the week.
Better news against the Icelandic krona
If we were looking for a more encouraging performance by the pound, we got something like it against the krona. Here the pound went from 185.120 to 186.858.
So the week had its moments and the British pound ended up with a few good results here and there. It turned out to be nothing too dramatic either way, but at least there were no major losses to contend with.
We shall see whether this pattern continues into a second week or whether the pound will leap ahead or fall back next time around. Whatever you think might happen next week, make sure you come back to us to find out what to expect from the British pound. We may have some surprises in store. Only time will tell, so come back for the answers next time.