An Uphill Struggle Revealed on the Currency Markets
Posted by Allison on 17 March 2014, 14:57
Welcome back to another evaluation of the pound’s standing on the currency markets. We hope you aren’t looking for a series of good results this time because you may be disappointed.
An overview of the currency markets for March 9th – March 14th 2014
Let’s see where the pound stood as the week started against the US dollar. The opening rate was 1.6770 before it dropped to close Monday evening on 1.6647. It continued to drop over the next couple of days as well, falling to a low point of 1.6613 on Wednesday evening. Unfortunately, although it did perk up a little on Thursday, reaching 1.6688 in the process, it was not enough. It ended up closing on 1.6594 on Friday evening, giving it the lowest result of the week.
So where would we end up against the Euro? Would we see a similar picture here as well? We opened on 1.2070 before falling back to 1.1993 on Monday, so it looked as though it was going to be a bad week here to – at least to start with. We did improve to 1.1996 the following day but it wasn’t exactly a big improvement. Apart from another similar situation that happened on Thursday, the main trend was indeed down. In the end the pound finished lower on 1.1952 against the Euro, giving us two disappointing results so far.
Our third stop is with the Hong Kong dollar. Here we began with a rate of 13.013 before experiencing the drop we’d seen against the other two currencies so far. This took us down to 12.920 on Monday night. We dipped further on Tuesday before recovering to 12.901 the following day. When we then improved further to 12.958 before falling back to a disappointing close on Friday night, finishing on 12.886 in the process.
Could we do better against the New Zealand dollar perhaps? We opened on 1.9723 here and once again got off to a bad start, dropping to 1.9677 on Monday. Things got worse the next day before we regained some ground by finishing on 1.9638 on Wednesday. But once again we were unable to maintain any kind of good news and we couldn’t achieve anything of note for the final two days of the week. Instead we finished on 1.9446 on Friday – falling way below the two dollar mark we had been hitting just a few short weeks ago.
Finally we should see whether the performance against the Australian dollar would be the same as the one we’d experienced elsewhere in the financial world. We began the week on 1.8365 and actually bucked the trend by improving to 1.8420. It didn’t last long because we dropped back to 1.8390 on Tuesday, but Wednesday’s result came as a surprise. This was when we managed to climb to 1.8551. We wondered whether we could maintain this but the answer soon proved to be no. The closing rate for the week turned out to be 1.8385 – although this was ever so slightly better than we’d started with, for once.
Notable events in the world of currency
Another drop against the Canadian dollar
This was no surprise, as we fell from 1.8420 to 1.8398 over the course of the week.
More bad news against the Swiss franc
Here we fared considerably worse, falling from 1.4714 to 1.4491 this week.
Three out of three
The pound also fell against the Icelandic krona, going from 189.026 to a much lower rate of 185.711.
As you can see it clearly was not the week of the British pound. We managed just one good result out of all the ones mentioned above, and even that was marginal at best. Perhaps we can report back with better news next time, if all goes well.
Whatever the situation might be you can be sure of finding all the answers you need right here on our website. Hopefully they will be more encouraging answers when next week comes around.