Posted by Allison on 26 February 2018, 16:46
You never know how a currency pairing is going to perform from one day to the next. That is what makes it interesting to look at a few weeks’ worth of data for one pairing in particular – the British pound versus the New Zealand dollar.
From that opening rate of 1.8991 for 2018, the pound peaked at 1.9113 midway through that first week. However, it dipped to 1.8942 by the time the week was over. The following week was less certain, seeing some falls beyond anything else, and leaving the pound on 1.8796 by the time the week was up. Would this progress into yet another week, or would January turn out to be more promising than it looked at this stage?
The third week of January certainly proved more encouraging than we had seen thus far. The pound managed to achieve five good results that week, going from strength to strength as each day passed. That meant by the time Friday afternoon arrived, we finished the week in style on 1.9047. However, better news yet was to come as we rapidly approached the end of the first month of 2018.
While we experienced a slight fall to 1.9024 on day one of that week, the rest of the week was far more encouraging. Would you believe that by the time the trading week was over, the British pound had risen to an incredible 1.9400? That meant it had added on an impressive 0.0353 over the course of that week. We sometimes see great results from the pound against this currency, and they can be significant within the space of a few days, but this was appreciable.
However, pride does come before a fall, and the pound fell to 1.9196 on day one of the new week – a week that would see January give way to February. It also meant the pound gave way to a week-ending rate of 1.9305 that week. This was lower than we’d seen the week before, but at least it was better than the week had started on.
From there, though, February has proven to be more challenging than we had hoped. The pound dipped to 1.9103 to close the following week, before falling further to finish on 1.8977 the week after. At the time of writing, it had finished the third full week of February on 1.9176, so this was better, although that was only made possible by a final flourish that week. The previous day had seen a rate of 1.8972.
So, where will the remaining days of February take us against the New Zealand dollar? And where will the pound go as we approach March? Spring may be in the air, but whether the pound has a spring in its step remains to be seen.