Ups and Downs Everywhere You Look This Week
Posted by Allison on 8 August 2016, 15:40
Things have been rather interesting on the currency front for the past few weeks, at least as far as the British pound has been concerned. So would the same be true this week as well?
An overview of the currency markets for August 1st – August 5th 2016
We had a good start to the week against the US dollar at least. The British pound began on a rate of 1.3167 and then improved to 1.3205 by the time the day had ended. Day two was quite good as well, as the pound steamed ahead to 1.3276. Would we have another good day on Wednesday? We would, and the pound finished there on 1.3347. But you just knew things would head in the opposite direction eventually, and this was the case by Friday night. By this time, the pound had dropped back to 1.3154.
We didn’t get such a good start against the euro, falling to 1.1828 from the opening rate of 1.1848. However, we then had two much better days that ended with the pound reaching 1.1917 by Wednesday evening. As you might imagine from that statement, things then went downhill and we ended up falling back to 1.1791 by the time trading was done for the week. This was lower than our opener had been, too.
The good start, poor finish pattern went on when we looked at the comparison between the pound and the Hong Kong dollar as well. We began on 10.214 before dropping back to 10.356 over the first three days of the week. Given the patterns we had seen elsewhere so far it was not a surprise to discover the pound then dropped over the final two days here as well. By Friday night we had dropped to 10.201 – again, slightly lower than we had seen on Monday morning.
Our fourth stop on this whistle-stop tour is in New Zealand. Here, we began trading with a rate of 1.8501 but things went in the opposite direction as the first two days were not good. We finished up on 1.8380 by Tuesday night, before rising to 1.8563 just 24 hours later. However, we could not keep that up over the final two days of trading, which meant we ended up on 1.8244 as the week came to an end. That was quite a drop over the week as a whole.
Now it was time to see whether a similar pattern would be seen against the Australian dollar as well. We started the week on 1.7514 before falling to 1.7448. We then ended up with two good days on the cards, which took us up to 1.7578 by Wednesday evening. Finally, though, it was too much to keep up a good performance all week. We finished on 1.7176 on Friday – a disappointing performance all in all.
Notable events in the world of currency
A fall against the Canadian dollar
Things were not good here as the pound fell from 1.7349 to 1.7131 this week.
Another drop, this time against the Swiss franc
Here too we didn’t get a decent result this week. The pound began on 1.2823 before dropping to 1.2795 to close out a week of trading.
Better news against the Icelandic krona
We did finally achieve something here, as the pound started on 156.452 and finished slightly better off on 158.335.
As you can see, the results are hard to find this time around if you are looking for good results. There were some good day-on-day ones but other than that you won’t see much in the way of great results across the week as a whole.
Unfortunately, we could be seeing results like this for a while yet. You never know what the currency markets may have in store and you never know if there could be some surprises along the way. Suffice to say we will report on every occurrence we see in the coming weeks.