Would There Be Good News to Report for the Pound This Week?
Posted by Allison on 16 July 2014, 05:33
We shall waste no time in launching into this week’s selection of currency figures. How well – or badly – would the British pound perform this time?
An overview of the currency markets for June 30th – July 4th 2014
Here we go again with a look at how the British pound would perform against the might of the US dollar. We opened on 1.7032 and managed to improve slightly to 1.7040 on Monday. Things got better still though when the pound continued to rise over the next couple of days, getting to 1.7160 in the process. However it didn’t last – the pound dropped to 1.7132 on Thursday before closing the week on 1.7143 on Friday evening. This was better than the opening rate had been though.
So would we go through a similar pattern against the Euro? Well, we began the week on 1.2505 and immediately dropped to 1.2476 so we got our answer there. However we soon bounced back and closed out Tuesday better off at a rate of 1.2529. We then experienced a few fits and starts over the next couple of days, finally settling on an improved rate of 1.2616 on Friday night.
We’d achieved two out of two good results so far. Could we tack another one on now? We opened on 13.202 against the Hong Kong dollar and we managed to get three excellent days in a row here, finishing Wednesday evening on 13.299. As you might imagine this led to a drop on Thursday but it wasn’t a large one and it was forgotten by the time we’d improved again on Friday. This meant we finished the week on 13.286, so once again things were looking good for the British pound.
Over in New Zealand the pound got started on 1.9436 and crept up over the first two days to close out Tuesday on 1.9576. We then went through a couple of days where the pound dropped in value once more, but by the time we stalled on Thursday night we were still ahead of the starting rate on 1.9539. Fortunately we managed to increase once more to finish the week on an impressive 1.9616.
So we have just one more stop to make, this time with the Australian dollar. The pound started on 1.8082 and didn’t have a single bad day the entire week. It moved up steadily in value across the whole five days of trading. This meant that by the time the week was over, the pound was worth significantly more at 1.8330. This is definitely what you would call saving the best for last!
Notable events in the world of currency
A slight rise in the exchange rate against the Canadian dollar
Here we did reasonably well, rising from 1.8202 to close out the week on 1.8232.
Another good result against the Swiss franc
We did rather well here too, starting on 1.5209 and finishing on 1.5341 even though we’d experienced a few ups and downs during the week.
The pound rises against the yen too
Things were going our way in Japan too, as we rose from 172.688 against the Japanese yen to finish the week on 174.955.
This has been one of the better weeks we have seen for the pound for some time. We’ve had some good results dotted around the place but it is rare to see all the currencies we look at dropping against the pound at the same time. Yet this is what we have experienced this time around.
It is rare however to see this happen two weeks in a row, so perhaps we should prepare ourselves in advance for the potential lowering of some of the above exchange rates. Of course you never know what could happen – that’s why making money by trading currencies is so very difficult. Whatever the outcome might be next week, we’ll be here to report on the differences we see.