Falls and More Falls: Where Would it End for the British Pound?
Posted by Allison on 16 July 2014, 05:36
Welcome to another report, freshly created for you and ready to provide some answers concerning the currency markets last week. Where would the British pound stand at the end of it?
An overview of the currency markets for July 7th – July 11th 2014
How would the British pound fare on the markets this week? It started at 1.7143 against the US dollar, but this soon dropped on the first day to end on 1.7121. Would we continue to see such drops or would there be a different story to tell? There were more falls up to and including Wednesday, when the pound finished on 1.7098, but as it turned out the last two days of the week had better news in store. We managed to improve things to close the week on 1.7120 but this was still below the original opening rate.
You never know how things are going to pan out against the Euro either. We were starting from 1.2616 and we saw a drop to start the week here too – falling to 1.2596 as a result. Again the first half of the week wasn’t good, with a low point of 1.2569 reached on Wednesday. Then again the pattern was also followed for the remaining two days, when the pound pushed back against the Euro and finished the week on 1.2592. As was the case with the US dollar though, we were still lower than we’d been to start with.
Over in Hong Kong their dollar pushed back against the pound too. We fell from an opening rate of 13.286 to finish Wednesday evening on 13.251. You can definitely see a pattern throughout the week here. Judging by the previous results we should expect two good days now and that’s exactly what we got. The pound eventually managed to push back and rise to 13.268 by the end of the week. Again though, this was lower than we’d started with.
We might have expected something similar to occur against the remaining two currencies we have to look at as well – the New Zealand dollar and the Australian dollar. Let’s start as usual with the Kiwi dollar, where the opening rate for the pound was 1.9616. Unfortunately while we were expecting a week of two halves, we didn’t get that at all. Instead the pound dropped and kept on dropping, never adding anything on at all. We finished Friday night much lower down on 1.9414.
Could we expect the same disappointment against the Australian dollar too then? Actually we could, unfortunately. We opened on 1.8330 before dropping steadily over the first three days to close Wednesday evening on 1.8208. We then rose to 1.8263 on Thursday before falling back to 1.8213 on Friday night. All in all it had been a disappointing week for the pound.
Notable events in the world of currency
Only a slight drop against the Canadian currency
Here there was a slight sigh of relief as we experienced ups and downs against the Canadian dollar. We opened on 1.8232 and closed on 1.8216.
More falls against the Swiss franc
We had a similar story here, opening on 1.5341 and closing the week on 1.5291, losing only a small amount in the process.
And yet again we see the same story against the Chinese currency
Here too we only had a small drop, falling from an opening rate of 10.637 against the yuan to close on 10.622 on Friday night.
There was a lot to focus on this week and none of the results we saw were good. We can hope for better next week but it can be challenging to see whether we manage to get the results we want or not. Whatever happens we have seen worse; at least none of the losses this week were particularly big.
Time will tell which way things will go next. We shall be here to report the next series of changes that occur either way.