Mixed Blessings for the British Pound

Posted by Allison on 11 October 2017, 15:51

Welcome back to the next slew of exchange rates achieved by the British pound last week. How good would they prove to be?

An overview of the currency markets for September 25th – September 29th, 2017

So, the British pound got underway on 1.3568 against the American dollar this week, but it did not shape up to be a good week – at least not based on the first three days. That’s because the exchange rate had fallen to 1.3408 by Wednesday night. There was a mild improvement the next day, as the pound rose to 1.3439, but that was wiped out by another fall on Friday. This left the British pound stalled on 1.3388 against the US dollar last week.

The next stop is with the euro, and the pound began trading here on 1.1343. It was a very different picture to the one we had seen against the US dollar though. The first three days were very encouraging, with each one seeing the pound doing well. This led to an exchange rate of 1.1420 by Wednesday evening. Unfortunately, the final two days were not as good, and by the time Friday night arrived, the pound had stalled on 1.1340 – just under the opening rate from Monday.

The Hong Kong dollar did better than the pound last week, taking control from the moment the markets opened with the pound on 10.596. Wednesday evening rolled around after three losses for the pound, taking it down to 10.473. Despite a rise to 10.495 on Thursday, the pound fell to a closing rate of 10.457 on Friday night. We’d lost ground once again, but it could have been far worse than it was.

So, could we do better against the Kiwi dollar? Well, the pound opened on 1.8531 and did well over the first two days, closing on 1.8648 on Tuesday evening. From then on, it was a mixed bag of results, and that meant by Friday the pound was on 1.8546 to finish the week. It was only a slight improvement, but it was good enough to count as a win. That is the main thing, even if the figures were only slight.

Finally, we have the Australian dollar to contend with. The British pound opened the week on 1.7027 against the Aussie currency, before dipping to 1.6963 on Monday evening. We did then have three excellent days to enjoy though, which meant the pound achieved a rate of 1.7178 on Thursday night. Despite a dip on Friday, it was not severe enough to prevent the pound doing well over the entire week, ending it on 1.7096.

 

Notable events in the world of currency

A slight rise against the Canadian dollar

Good news here this week – the pound rose from 1.6646 to 1.6656 over the course of five days.

 

Not so good against the Swiss franc, though

Here, we didn’t have as much luck. The pound started trading on 1.3145 before falling to 1.2993 by the end of the week, despite a couple of reasonable days included in that period.

 

Freefall against the Icelandic krona

We managed a slight rise on day one, from the opening rate of 145.410, but that was the limit. By Friday evening, the pound had fallen to close on 142.163.

 

So, this was far from a great week for the British pound. We did have some good results to spot, but we didn’t manage to put in a great performance across the board. Mind you, that is usually very difficult to do. Even when we did get good results this week, they were often just slightly up on the previous ones.

Where would this leave us for the weeks to come? It was difficult to say for certain, but as time goes on, we hope we can spot more good results for the British pound. The situation with the EU means we can never be sure what will happen against the euro, but there is plenty to contend with against other currencies as well. Stay tuned for the latest news soon.

 

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