The Euro Struggles to Do Any Damage to the British Pound
Posted by Allison on 18 July 2012, 05:04
Another week has passed us by and it is time once again to see whether the British pound has performed well against the main currencies used in other parts of the world. Let’s see whether we have anything to celebrate this week.
An overview of the currency markets for July 9th – July 13th 2012
When we last left it we saw the pound garnering a rate of 1.5539 against the US dollar. Just one day into the new week and that rate had fallen to 1.5490. It perked up again the next couple of days though, so we had good news to consider there. Unfortunately it peaked too soon and by the end of the week the pound had fallen back to 1.5473.
We were hoping for an appreciable rise against the Euro, from a starting point of 1.2554. We got a good start as the pound rose to 1.2600 on Monday evening. Indeed it didn’t go back below 1.26 for the rest of the week, meaning the Euro was still under some considerable stress in the currency world. The pound reached a promising rate of 1.2698 by Friday evening.
When the week began the pound was worth 12.048 against the Hong Kong dollar. This dropped to 12.012 the following day, before rising again to regain some of the lost ground. Another rise on Wednesday meant the pound reached a high of 12.062 but it dropped back below 12.0 the next day. Fortunately it finished on a better note but still could only regain a rate of 12.002 to close the week.
When the week opened against the New Zealand dollar the pound stood at 1.9388. Monday was a great day that culminated in a rate of 1.9511 being achieved by the close of play. Could the pound keep this up all week though? The high was reached on Thursday as the pound hit 1.9608 but even though it fell back to 1.9559 on Friday this was still better than the opening rate had been.
Finally we have to consider the Australian dollar. The pound started on 1.5138 here and by the end of day one it had improved to 1.5224. It dropped back over the next couple of days though, making us wonder whether it would struggle to get any higher. Fortunately it managed to close out on a rate of 1.5217 so there was good news in store in the end.
Notable events in the world of currency
A marginal drop for the pound versus the Canadian dollar
It was a small drop from 1.5767 to 1.5734 but a drop nonetheless.
Better news against the Swiss franc
Here the pound rose from 1.5079 to 1.5249 by the end of the week, marking a significant improvement.
Another rise against the Icelandic krona
Here the pound went from 198.810 to a healthier 199.119 by the close of play, so it was another good result to celebrate.
There was more bad news for the Euro last week – and it came on Friday 13th too. News outlets revealed the Euro was at its lowest level for three and a half years, putting the pound in a strong position against the European single currency. You can read more about the story here.
All in all it has been a reasonable week for the British pound. One wonders whether the pound will get even stronger against the Euro, given the situation in the Eurozone at the moment. With so many European countries struggling to make ends meet, it must surely only be a matter of time before the Euro implodes. We shall be watching to see whether this is in fact what happens, or whether another set of events is set to occur. It could be a fascinating few weeks ahead, and we shall be here for every single one of them.