Posted by Allison on 14 November 2011, 14:55
The ups and downs of the currency markets have been quite difficult to keep track of in recent months. The global turmoil seems to be reaching fever pitch at times, and at the end of September the pound was worth 1.5580 against the US dollar. The question was which direction it would go in next on the currency converter.
The early signs during that first week of October were not good, as the pound dipped to an extent. But it picked up enough to crawl back to 1.5534 by the end of the week, so all was not lost yet.
The second full week looked better though. The pound managed to get a footing against the American currency and by the time these five days of trading were over, the pound had jumped up to 1.5783. The question now was if we could get even higher than that, or whether we would now start to lose ground again.
The following week was a little like the first in that there were a few highs and lows of varying degrees. Although it was difficult to see where things would end when they finally did, it was clear that things turned out in our favour in the end. By the time the weekend was upon us once more, the pound had reached the appreciable level of 1.5900.
So the question now was whether the pound could manage to tip over the 1.60 exchange rate this month, or whether it would start slipping back into weaker territory. In actual fact the following week was spent drifting around in the 1.59 territory, so it seemed as if the pound itself was undecided on what it should do. Finally it closed out the week on 1.6102 which was excellent news for those who were hoping the British pound could put in a better performance.
There was just one more trading day left until the end of the month, and although the pound lost a bit of ground and slipped back to 1.6035 it still managed to do well overall.