Peaks and Troughs to Be Negotiated By the Pound
Posted by Allison on 12 December 2012, 14:20
Even though we are fast approaching the end of 2012, there are still a few short weeks to go before the year is over. So let’s see where things stand for the British pound at the moment, after last week’s changes.
An overview of the currency markets for December 3rd – December 7th 2012
As the week got underway, the British pound was standing at 1.6016 against the US dollar. But would it go up or down from there? The answer was up, at least to begin with, as the pound finished Monday on 1.6078. It then perked up further to 1.6117 on Tuesday but this was as high as things would go. By the end of the week the pound had slid back to 1.6009.
So would there be a similar story against the Euro? The opening rate here was 1.2333 but this dropped to 1.2313 on day one. Fortunately the latter half of the week produced better results than the first half, and by the time Friday night came around the pound was looking better on 1.2405.
Next we stop at the Hong Kong dollar, where the pound was worth 12.412 at the start of the week. Again we saw a good result on day one, as the pound climbed to 12.460. It managed to hit a peak of 12.490 the following day before slipping back for the remainder of the week and ending it on 12.407.
Our fourth stop is with the New Zealand dollar. To begin with the pound was worth 1.9567 but would it still be worth this by the close of the week? Unfortunately it dropped in value almost immediately, after a marginal rise on day one. The following day it fell back to 1.9532 before dipping further to 1.9492 the next day. But there was worse news to come as the pound ended up falling to a low of 1.9235 on Friday evening. We can only hope it gets better next week.
Finally let’s stop and see whether the pound had a similarly hard time against the Australian dollar. It opened the week on 1.5384 and went up to 1.5413 on Monday evening. But that would be as far as it got, because it was downhill from there on in. Friday night ended with the pound dropping to 1.5280.
Notable events in the world of currency
Slight drop against the Canadian dollar
Here the pound fell from 1.5915 to 1.5886, although it finished Tuesday on a higher 1.6019.
Better news against the Swiss franc
Here the pound started on 1.4866 and managed to climb to finish the week on a healthier 1.4982.
A slight rise against the Indian rupee as well
The pound managed to go from 87.168 to 87.210 here, rounding off a mixed week of results.
So it is plain to see the pound had some tough challenges last week. While this led to marginal improvements in some cases, it also led to some disappointments in others. But isn’t this the average week on the currency markets in many respects? While we may see a week offering nothing but good or bad results for the pound, it is perhaps more realistic to see a mixed bag of results as we have this week. At least the losses have only been small ones and nothing major, as has happened before.
Regardless of the picture this week, we must now look ahead to see if we can expect better news or worse next week. There are just a few more reports to go for this year, so perhaps we can hope to finish the year on a good note rather than just the month. We shall see.
At any rate we will be back next week to reveal whether the mixed fortunes for the pound are set to continue or whether things have improved – or perhaps even got worse. We will see you then.