Rises in Store – But Which Currency Would Enjoy Them?
Posted by Allison on 10 September 2012, 10:53
Welcome back to another currency report, which this time takes us into the beginning of September. The year is flying by at an alarming rate, but is the British pound able to keep up with the best of the action, or is it falling behind the other major currencies on the currency markets today?
An overview of the currency markets for September 3rd – September 7th 2012
When we last left the British pound it was worth 1.5857 against the US dollar. So would it build on this or take a nosedive in the coming week? The early signs were good as it rose to 1.5884 on Monday evening, but it slid slightly to 1.5880 the following day. However the only way would be up from then on, and the pound closed out the week on a healthy 1.5948.
The question now was whether it could achieve as much against the Euro. Things are always hard to gauge here, and with a starting rate of 1.2574 it was anyone’s guess as to what would happen next. As it turned out day one was a good one, with the pound rising to 1.2639. However the rest of the week saw peaks and troughs and we ended in a trough unfortunately, closing the week on 1.2551.
Next stop Hong Kong, and the pound started on 12.298 against that particular dollar. This went up to 12.321 the next day and the pound never looked back. In fact this would turn out to be one of the best performances it had put in for quite some time, with the pound eventually finishing the week on an excellent 12.369.
Let’s see what happened against the New Zealand dollar now, where the pound began the week on 1.9752. The very next day the currency had improved to 1.9910, so would we see the pound tip over the two dollar mark? The answer was yes, but we waited another two days to see it close out Wednesday on 2.0050. Unfortunately it couldn’t hold that position for the remainder of the week and it ended up finishing the week on a lower 1.9815. This was still better than the opening rate though, so that was pleasing.
Finally we have the Australian dollar, and the pound started the week on 1.5342 here. The first day was encouraging here too, as it rose to close out Monday on 1.5518. A dip the next day was followed by a peak of 1.5609 on Wednesday evening, before the pound fell back to finish the week on an exchange rate of 1.5412.
Notable events in the world of currency
A fall against the Canadian dollar
The pound dipped from 1.5701 here to 1.5654 at the end of the week. It could have been worse though.
A consistent improvement against the Swiss franc
The only way was up here last week, as the pound gradually found its way from 1.5100 to 1.5222 throughout the day.
Another good result against the Chinese yuan
Here the pound went up from 10.067 to 10.117 over the course of the week, with only one minor dip en route.
Perhaps one of the biggest news stories in the currency world last week was the news that the Euro was holding steady. The news that bonds would be made available to buy in the Euro zone appeared to give markets a reason to celebrate, as this Reuters story showed.
So it was a good week for the British pound all in all, but it remains to be seen whether this good news continues into forthcoming weeks. As we all know by now, anything can happen in the currency markets and it would be foolhardy to suggest this was the beginning of a good period for the pound. Next week could change things completely, so we shall see what happens next. Rest assured we will be here to provide the results as we find them.