Mixed Results But the Onus is On Improvement
Posted by Allison on 3 November 2014, 11:35
Welcome back to our latest currency report, in which we delve into the improvements (or lack of) made by the British pound this week. Without further delay let’s see where we stand.
An overview of the currency markets for October 27th – October 31st 2014
Where would this week’s efforts take the British pound? It started well against the US dollar, beginning the week on 1.6050 and finishing Monday on 1.6108. After another good day on Tuesday, taking the pound to 1.6175 in the process, it was unfortunately downhill the rest of the week. Three disappointing days were to follow, which ended up with the British pound closing the week against the dollar on 1.5969. Would this performance be replicated elsewhere during the week? Let’s find out.
Our next stop is in Europe where the single currency was going head-to-head with the British pound. Our opening rate was 1.2679 and once again day one was rather good, nudging the pound up to 1.2704. The pattern stopped here though, as the pound then fell back to 1.2688 by Tuesday evening. Wednesday wouldn’t be a good day either as it turned out, pushing the pound back to 1.2643. However this would not be a bad end to the week as we’d seen against the dollar. Instead we ended up with a much stronger finish, as the British pound rose throughout the last two days to close on 1.2751 for the week.
We’d done well for the first two days of the week against one dollar, the American one. How would we fare against the Hong Kong version? We began with a good couple of days here too as it turned out, rising from 12.451 on Monday morning to 12.548 by Tuesday evening. Unfortunately we then followed the pattern we’d seen against the American dollar through even further. Instead of continuing to rise, the pound lost ground from Wednesday morning through to Friday evening, taking us back to 12.384 as a result.
It’s on to New Zealand now where the pound began the week on 2.0433. We had a marginal improvement here on day one, taking us up to 2.0461 as a result. However we were then in for two disappointing days that saw us drop to 2.0273 overall. Fortunately we did save some better results for the last two days of the week, as the pound finished on 2.0459 on Friday night.
Finally could we manage to put in a reasonable performance against the Australian dollar? Our opening rate here was 1.8252 and once again day one was rather good, taking us to 1.8322 in the process. However we then saw two bad days again, as the pound slid back to 1.8122 by Wednesday night. Thursday saw the pound edge back up to 1.8179 but after that it was back down to earth again as the British pound finished up on 1.8168 against the Australian dollar.
Notable events in the world of currency
A small improvement is made against the Canadian dollar
Here the British pound managed to add on a little by going from 1.7992 to 1.8004.
Another improvement noted against the Swiss franc
Here too there was good news, if only marginally. The pound started the week on 1.5290 and ended it on 1.5386.
An eventual improvement against the Icelandic krona
Here the pattern was up and down all week, but the pound did eventually move from 194.056 to 194.631.
As we can see the week did have its good results and there were plenty of them too. While the pound didn’t perform well against every other currency (something that is a rarity) it did do well in many areas. If this performance could continue throughout the next few weeks we could reasonably expect some better results next time around as well.
Of course things rarely pan out like that. We may end up seeing results that aren’t as satisfying as we saw this week. We shall see – and the answers will be in our next report so we’ll see you then.