More Challenging Circumstances for the British Pound
Posted by Allison on 5 July 2013, 07:21
Welcome back to another currency report, which will focus on the British pound once again, and how well (or not) it would be able to perform this time around. So without further ado let’s see how it did last week.
An overview of the currency markets for June 17th – June 21st 2013
As the week began, the British pound started out at 1.5623 against the US dollar and immediately improved, heading up to 1.5735 by the end of Monday. However as things turned out this would be the best the British pound would do. By the time Wednesday evening arrived the pound had slipped to 1.5664 and there was worse news to come too, as the pound ended up closing on a disappointing 1.5445 by the time the week was over.
With that in mind, how would things go against the Euro? The opening rate here was 1.1743 for the pound, and it did manage to improve things to 1.1798 on day one. However, once again there was a dip from that point on, heading down to 1.1679 the very next day. The good thing was that the pound did not follow the path it had against the US dollar from that point on, because it actually started to improve. By the time the week was over, the closing rate for the pound versus the Euro was 1.1719.
Next up is the Hong Kong dollar and the British pound managed to get a good start here as well, rising from the opening rate of 12.126 to close day one on 12.210. After that though it was a similar picture – very similar in fact to the picture we had seen against the US dollar. The pound just lost ground as the week went on, and though it staged a comeback on Wednesday it was not enough to get a good result in at the end of the week. Instead the pound closed on 11.981.
The next stop is the New Zealand dollar, where the pound started on 1.9341. It went up to 1.9490 on day one, and we were in for a treat because the British pound went from strength to strength over the course of the week. Indeed by the time the week was over the pound had gained an exchange rate of 1.9927.
So would it be a similar story in Australia as well? Let’s find out, as the pound started on a rate of 1.6254. The early signs weren’t good as the pound dropped to 1.6371, but after that things looked to be improving. Indeed, by the time the week was over, the pound had shot up to 1.6753.
Notable events in the world of currency
Another improvement against the Canadian dollar
Here the pound managed to go up from 1.5882 to 1.6061.
A slight drop against the Swiss franc
There was no such good news here, as the pound dropped from 1.4470 to close on 1.4364 on Friday evening.
A slight improvement against the Icelandic currency
Here the pound managed to go up from 188.052 to close the week on 189.679.
So it was an interesting week all in all, because the British pound did have some notable successes. Indeed some of them were major successes that enabled the pound to become worth far more than it had been previously. Sometimes it feels as if the pound is wading through treacle to get to where it would like to be, but this was not the case this week. While not all the results were good ones, many of them were reasonable and some were extremely good.
It will certainly be interesting to see where the British pound goes from here, and to see whether it can improve in other areas next week. We can only hope for some good results and the ability to achieve more in the future. We will be back next week as well, so you can look forward to a fresh report then.