Can the Pound Turn Around its Performance from Last Week?
Posted by Allison on 5 June 2013, 15:10
If you read our report last week you will know the pound did not do well at all. Instead it struggled to achieve anything of note against any of the main currencies. So what would this week bring? Would it show us some good results or would there be challenges still to come?
An overview of the currency markets for May 27th – May 31st 2013
Last week was a poor show for the British pound, so would this week fare any better? The pound opened on 1.5098 against the US dollar and by Monday evening it had already improved to 1.5122. From there through the remainder of the week the pound managed to improve rather well with nothing but a small dip midweek. It saved the best performance for last though, as the currency raised its game to close on 1.5235.
The pound opened on 1.1669 against the Euro, and again day one proved to be a good start. It climbed to 1.1687 on that day, and again it proved to be the midweek point when we saw a dip, this time going down to 1.1669. However better news was saved for later on in the week, when the pound soared to close Friday evening’s trading on 1.1714. It was clearly recovering somewhat after the losses of last week.
The pound had some good news in store against the Hong Kong dollar as well. Here the British pound opened the week on 11.721 and rose to 11.740 on Monday evening. There was good news in store throughout the week here too; in fact the graph showing the pound’s progress against the Hong Kong dollar was very similar to that shown against the US dollar and the Euro. Again the best news was that the pound finished on 11.829 on Friday.
We can apply that same graph to what happened against the New Zealand dollar as well. This gave us more good news for the pound as it opened on 1.8627 on Monday morning, and by the evening it had dropped to 1.8696. It dropped a little the following couple of days, but from then on it was plain sailing. In fact the closing rate on Friday evening turned out to be 1.9053 – an incredible performance.
Finally let’s see if the pound could make it five good results in total with its performance against the Australian dollar. The pound opened on 1.5576 and the following day it had risen to 1.5667. Again the midweek territory proved challenging, but the pound didn’t let us down. Instead it managed to soar to close out the week on 1.5861.
Notable events in the world of currency
Good news against the Canadian dollar as well
Here the British pound soared from 1.5600 to close out the week on 1.5737.
But a slight fall against the Swiss franc
This was an unusual one – the pound began on 1.4546 and rose to a high of 1.4653 partway through the week before it fell to finish on 1.4532.
Another rise against the Icelandic krona
Here we had more good news though, as the pound rose from 186.707 to 187.203.
That one result against the Swiss krona (which was hardly a really bad one) was the only blot on the landscape when it came to the main currency results this week. The pound was clearly able to recoup at least some of the losses it had made last week, and that was good news – the best we could have hoped for.
Indeed, when it comes to enjoying good currency reports, this must be one of the better ones we have seen in some time. Of course our eyes now turn to next week, and the question of whether a performance like this will stand up for another week. Will the pound be able to survive and thrive for another week or will those other currencies beat it back into submission again? We shall see, and we shall report the results here.