A Remarkable Week for the British Pound

Posted by Allison on 21 January 2019, 12:06

Superb performances have been hard to come by for the British pound of late. However, there were some of those very performances to note last week, as we will reveal here.

An overview of the currency markets for January 14th – January 18th, 2019

The week’s trading got underway on 1.2855 for the British pound versus the American dollar. It started well, too, rising to 1.2870 on day one. However, it then fell back to 1.2858, highlighting the uncertainty of the pound’s status at present. We were not expecting a good week here all told, but it appeared the pound had other ideas. Indeed, by Friday night, the pound had achieved two good days out of three. By stringing those together, it became clear the pound was slightly better off on Friday night, rising over the week to reach 1.2872.

Could the same be said when the pound traded against the euro, though? Opening on 1.1217 this week, the pound immediately improved to 1.1221. However, that would turn out to be a tiny improvement compared to what awaited in the days to come. By Thursday evening, an impressive rate of 1.1402 would be gained. Although the pound did fall to 1.1328 against the euro on Friday, this was far from enough to wipe out the impressive gains made thus far.

So far, the pattern was largely positive by the pound. We would see something similar against the Hong Kong dollar too. Starting the week on 10.079, we rose to 10.093 on Monday before falling to 10.085 the next day. We also managed a high point of 10.183 over the entire week regarding the closing rates, although we could not sustain that on Friday. By then, the British pound had fallen to 10.095. However, that was still noticeably better than the opening rate had been.

Meanwhile, a similar pattern played out against the New Zealand dollar. Overall, we would do well here, although there was great uncertainty along the way. Starting on an exchange rate of 1.8830, Monday saw this increase to 1.8869. A marginal drop to 1.8862 the following day caused some concern, before the pound soared to 1.9009 on Wednesday. It perked up further to 1.9200 on Thursday, and while it fell to close the week on 1.9089, this represented a strong week overall.

Would we see a similar strong performance against the Australian dollar? We would – we won’t keep you in suspense on this one. There was an opening rate of 1.7820 here, before the pound improved to 1.7879 on Monday. Some ups and downs ensued, although Thursday turned out to be another good day, with a top rate of 1.8052 by the day’s end. We finished the week on 1.7964, which again was a marked improvement on the opening situation.

 

Notable events in the world of currency

A slight improvement against the Canadian dollar

We saw a slight increase in the exchange rate here over the week, with the pound creeping ahead from 1.7049 to 1.7077 this week.

 

Better news for the pound versus the Swiss franc as well

Here, the climb was slow but steady and it lasted for the whole week. Beginning on 1.2651, the pound gradually climbed to attain a closing rate on Friday night of 1.2815. A good performance here.

 

More of the same against the Icelandic krona

It may not have succeeded in doing well every day, but the pound did enough here to cause another good result to come about. It began Monday morning on 154.805 before reaching 156.080 at the end of a week’s trading.

 

This was one of the more encouraging weeks we have seen in quite a while. We do not know whether it will be the last such week we will see for a bit or whether we can maintain a similar pattern to achieve more in the future. However, we can hope for some positivity on the currency front. Judging by this week’s performance, we may perhaps be right to do so. Let’s hope for more good news to come.

 

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