Concerns Over the State of the British Pound This Week

Posted by Allison on 11 October 2017, 15:53

Welcome back to our latest look at the situation for the British pound on the currency markets. Would this really be a disappointing week for the currency? Let’s find out.

An overview of the currency markets for October 2nd – October 6th, 2017

Let’s begin by exploring the situation between the British pound and the US dollar. The pound opened trading on 1.3388 against the American currency, but the first two days did not go its way. Instead, it dipped to 1.3236 by Tuesday evening. There was some more encouraging news by Wednesday night, with a rise of 0.318% to 1.3278, but that was not enough to secure an overall good performance for the week. Instead, we finished on 1.3075 – some way below the opening rate from Monday morning.

Would we have a similarly-disappointing performance against the euro? It didn’t start well, with the opening exchange rate of 1.1340 dipping to 1.1262 by Tuesday night. The pattern followed that seen against the US dollar throughout the remainder of the week, too. A rise to 1.1265 occurred on Wednesday, but it was downhill all the way after that, unfortunately. The pound finished on 1.1168 by the time Friday’s trading was over.

Our third stop takes in the Hong Kong dollar, and the pound began on 10.457 here before following the exact same pattern once again. This meant it fell to 10.339 by Tuesday evening, before recouping some ground to finish on 10.364 on Wednesday night. And then we had those same two disappointing days to finish on. By Friday evening, we had lost more ground, stalling on 10.206 for the week. It didn’t seem as if the pound would achieve anything much of note this time around.

Our next foray into the currency markets sees us exploring the situation with the New Zealand dollar, where we finished on 1.8546 last week. The pattern was almost the same here, except to say the final day of trading went in our favour, instead of going in the other direction. So, while we still had three poor days, we managed two reasonable ones. This was partly why the losses this week were not quite as bad as they could have been. Friday’s ending rate was 1.8441 for the British pound.

Finally, were we to see something similar against the Australian dollar as well? We left things on 1.7096 last time, but although we were hoping to follow the pattern we had against the Kiwi dollar, this would not be the case. Instead, the pound dipped every day this week against the Aussie currency. So, by Friday night, it had slipped to a weaker 1.6820. That is a significant loss for the pound over the course of the week, but perhaps not a surprising one given the pattern it has followed thus far. Maybe we should have expected it.

 

Notable events in the world of currency

More disappointing news against the Canadian dollar

Here too things were failing for the British pound. It opened trading on 1.6656 before falling to 1.6441.

 

A slight drop against the Swiss franc

We were expecting another loss here, and that is indeed what happened. We ended up dropping from 1.2993 to 1.2813 this week.

 

A bigger fall against the Icelandic krona

Another poor result for the British pound here, as it went from 142.163 on Monday morning to 138.466 by Friday night.

 

It appears things did not go well at all for the British pound last week. It’s a shame to see so many bad results, but of course we know some weeks can go like this. Maybe things will brighten up for the pound next week, although we can never be sure. 

We are sure, however, that we will be back with the latest currency reports and news concerning the British pound very soon. Make sure you follow our blog to see the latest information when we have it. We’re curious to know whether the pound can regain these losses next week.

 

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