Posted by Allison on 15 September 2011, 15:49
It does sometimes seem as if it’s a struggle, doesn’t it? Every time we look at how the pound is doing against a choice of major currencies, we seem to always come back with poor results. But is this always the case? Do we really find it so difficult to spot good results anywhere?
If the pound did always do badly it would have gone out of existence a long time ago. It is certainly struggling against all kinds of currencies at the moment, but the same could be said of many other currencies as well. In reality what we generally see is a good performance by the British pound one week, followed by a bad one the next week. One bad week could wipe out a couple of weeks of good progress, and the reverse could also be true. It all depends on what is going on around the world and how severe the consequences are to these events.
For example the pound dropped in value overall against the Euro in August. But there were big dips and nice peaks in the day by day battle as well. Conversely if we look at the pattern between the pound and the Canadian dollar, there were some huge rises early on in the month before things levelled off somewhat. However it was still a really good month all in all which meant we could enjoy good news on the whole in this particular situation.
So you can see there is good news to be discovered for the British pound. It just depends on where and when you look for it. Sometimes there can be a whole run of good results followed by a dip that pretty much wipes them all out. You’ve probably seen a few of these. But you can also see bad results that are then forgotten amidst a few good days later on. It all depends on what is going on in the world and how it affects the pound and its position in the world currency markets. Take a look now and see.