Would the Euro Get the Better of the Pound Again this Week?
Posted by Allison on 7 September 2012, 15:39
Here we are again with another currency report to present to you. It’s been an interesting week, but does this mean good or bad news for the pound? Let’s not keep you in suspense any longer, but let you know how things progressed.
An overview of the currency markets for August 20th – August 24th 2012
When we last left the pound going up against the US dollar we left it on a rate of 1.5712. The new week didn’t get off to the best start as it ended up sliding to 1.5699 by Monday evening. So did this mean it would be a bad week for the British pound? The good news was it wasn’t the case, because Tuesday night saw an improved rate of 1.5764 and by the time Friday arrived the pound was able to close on 1.5839.
Now let’s see whether we could achieve something similar against the Euro. The opening rate here was 1.2736 and Monday saw a slight improvement to 1.2764. But that was when the rot set in and the pound started to fall in value. Fortunately the falls were minor ones and that meant the closing rate for the week here was 1.2664. The pound had lost value over the week but fortunately it was only by a small amount.
So could it do any better against the Hong Kong dollar? The opening rate here was 12.186 but this dropped to 12.178 by Monday night. However things perked up from then on and by Thursday evening the pound was up to 12.307. This dropped slightly to 12.286 by Friday night, but it still represented a good week for the British pound.
Our next stop is the New Zealand dollar, and here the pound began the week on 1.9488. Here the initial route was down, because by Tuesday evening the pound could only muster 1.9389. As it turned out though, things were on the up from that point on and the week ended on a more respectable 1.9547.
So that leaves us with one final stop to make before we round off this section of the report. We started the week on 1.5065 against the Australian dollar, and we experienced a dip on the first day as the pound fell back to 1.5041. However would the rest of the week be good or bad for the pound? The news was actually rather good as we finished with a flourish on 1.5236.
Notable events in the world of currency
Excellent news for the pound against the Canadian dollar
There was a great result here last week, as the pound went from 1.5532 to 1.5734.
However not such good news against the Swiss franc
Here the news saw the pound dip against the franc, going from 1.5297 to 1.5208 in the process.
But back to the good news with the Icelandic krona
At least the pound was able to do well here again though, rising from 187.365 to 190.374 over the course of the week.
One news story that caught our eye over the past week came on Friday, when the Euro took a tumble in the markets. Sometimes it seems as though the Euro is able to fight back against the British pound, even when it is in trouble, so perhaps this story is most notable for being bad for the Euro rather than good.
So it wasn’t a bad week for the British pound in the end, and hopefully things will continue in the same vein. If we are able to keep improving in much the same way we did this week against most of the other currencies, we could be in for a productive couple of weeks on the currency markets. Needless to say we shall keep you informed and we’ll be back next week with the next currency report. We’ll see you then.