Challenges Throughout the Week for the British Pound
Posted by Allison on 30 June 2014, 14:14
Not all weeks can be resounding successes for the British pound and it looks like this would be one of the more disappointing ones. Let’s take a closer look at what went on country by country.
An overview of the currency markets for June 23rd – June 27th 2014
As the week began we started on a rate of 1.7038 against the US dollar. Unfortunately we didn’t get off to a healthy start because we saw the pound drop in value over the next three days, reaching a low point of 1.6971 on Wednesday. However since this turned out to be the lowest point of the week we then had a better couple of days to close out on. We ended up on 1.7032 on Friday night, so we almost regained the opening rate we’d lost from Monday morning onwards.
We may not have achieved much against the US dollar but would we be in a similar position against the Euro? In actual fact the situation here virtually mirrored the one we had experienced against the dollar. We saw a steady series of falls from Monday through to Wednesday, taking the opening rate of 1.2539 to 1.2464 on Wednesday. We had an increase to 1.2514 on Thursday but unfortunately we then dropped back again on Friday, closing on a rather disappointing 1.2505 as a result.
Next we go on to the Hong Kong dollar. Here the pound started on 13.206 but immediately dropped to close on 13.183 on Monday evening. It then suffered another couple of days’ worth of falls, closing on 13.155 by the time Wednesday evening arrived. However we were hopeful that the final two days of the week would give us better results and indeed they did. By the time Friday evening arrived we had pushed back up to 13.202 – not quite where we were to open the week but at least we had achieved something of note to regain some of our losses.
As the week began against the New Zealand dollar we started on 1.9589 but this too dropped back as soon as we got started. We fell to 1.9480 on Monday evening but went back up to 1.9512 the following day. We then saw two days of losses that took us to 1.9435 on Thursday evening before we managed to increase things ever so slightly to 1.9436 on Friday.
Finally we have the Australian dollar to look at, and the potential for another loss here too. We opened on 1.8126 and once again saw a fall on day one to 1.8019. We then had a good two days that took us up to 1.8122 by Wednesday evening, before experiencing further losses throughout the rest of the week. This meant our closing rate turned out to be 1.8082 by Friday evening.
Notable events in the world of currency
Another drop against the Canadian currency
There was nothing to celebrate here as the pound fell from 1.8425 down to 1.8202 against the Canadian currency last week.
A smaller drop – but a drop nonetheless – against the Swiss franc
Here the pound had a smaller drop from 1.5258 to 1.5209 over the course of the week, with the Swiss franc always pushing to come out on top.
Another slight drop against the Chinese yuan
Here too the news wasn’t good, as the pound dropped from 10.608 to 10.590 as the week went on.
So as you can see it was a disappointing time all in all this week. Perhaps we can hope for better next week but to be honest anything can happen. As we know from previous experience a good start to the week can lead to anything but, and vice versa. We just have to take things a day at a time and hope the pound can return to stronger figures when the chance arises. We shall be back with more news for you next week so we can see how well – or badly – the pound is progressing.