Posted by Allison on 25 November 2010, 12:05
Some months and some currencies really raise the eyebrows more than others do. Sometimes two currencies can meander through a month and you look back and feel as if nothing at all has happened. But this was not the case during October for the British pound and the Hong Kong dollar. From a starting rate of 12.316 on the currency converter as far as the British pound was concerned, it turned out to be a very interesting month indeed.
With just a single day before the first weekend of the month kicked in, the pound had little to do and it finished up on 12.276 as a result. This was not really worrying though – after all we had only just got started.
The first full week of the month was rather better for the pound though. By the time the 5th arrived we were sitting on a rate of 12.332. Did this bode well for the remainder of the month or were we being lulled into a false sense of security by the Hong Kong dollar?
We managed to reach a high point of 12.385 that week, but unfortunately it didn’t happen on Friday night. Instead we dropped back to 12.300, giving us something to think about before the fresh week began.
The subsequent week was really one of ups and downs. First we were on 12.363 then we dropped down to 12.288 after a stronger day by the Hong Kong dollar. But we did manage to end the week on 12.455 and as a consequence of this we were feeling more confident about the overall performance across the entire week.
However nothing happens on the currency markets for very long. Even if one currency is looking healthy one week, things can change very quickly the following week. This is exactly what happened with the British pound in this situation, as the Hong Kong dollar took charge on the next week of October. By the time it had finished the pound was back down on 12.194.
So where on earth would the month end? This was a choppy affair to be sure, and there was no telling where we would end up as a consequence. The first day of the next week ended with the pound on 12.199, but we put in a sterling effort (if you’ll forgive the pun) to climb to 12.308 the next day. We felt that the pound was able to put in one final push to try and make the month memorable for a good reason instead of a bad one, and indeed that is exactly what happened in the end.
The closing rate for October was 12.372 and since this was actually better than the rate we had started off with, we could do nothing but celebrate here. This was an astounding month with no clear idea during the process which currency would come out on top. But thankfully it was the pound that prevailed – for October at least.