Posted by Allison on 26 June 2015, 14:18
Once again we have been watching the currency markets closely and we are ready to report back on the latest happenings in that area.
As the week got underway the British pound stood at 1.5486 against the American dollar. As things turned out, it was unlikely we could have asked for a better week than the one we got. The improvements began on day one with an increase to 1.5507. However that was just the beginning of the improvements we saw over a four-day period at the start of the week. By the time Thursday night came around, the pound had soared to 1.5911. We did see a slight redressing of the balance on Friday (the pound dropped back a little to 1.5838 then) but all in all this was far better than we might have expected.
Back in Europe the pound began Monday’s trading against the euro at 1.3802. With all the talk over the possibility of a ‘Grexit’ (a Greek exit from the euro) it was perhaps little wonder the pound did well here too. Indeed, there was not a single day this week where the euro did better against the pound – it was all one-way traffic. From a starting rate of 1.3802 the pound eventually moved up to close the week on 1.4017.
Over in Hong Kong the pound began trading on 12.006 on Monday morning. A series of steady improvements were seen over the first three days, taking the pound to 12.195 in the process. After that it jumped further on Thursday, rising to 12.336. We did see a drop on Friday, much as we had against the US dollar, as the pound fell to 12.277, but this still meant the pound finished in good style compared to its starting position.
Next up we have the New Zealand dollar to consider. Here the pound began on 2.2198 after an excellent week last week. We didn’t get the best start though, as the pound stalled on 2.2191 by Monday night. As it turned out, this would be the worst result of the entire week. From then on the pound performed strongly. Amazingly enough, it actually finished on 2.2978 on Friday night.
Could the pound achieve something similar against the Australian dollar as well though? Here the opening exchange rate was 2.0096 but we immediately dropped to 1.999 by Monday night. However things turned out very differently over the next couple of days. By Wednesday the pound was on 2.0493. While it did fall back a little on Thursday, this didn’t stop it achieving a closing rate of 2.0452 by Friday night.
Here the pound managed another good result. It climbed from an opening rate of 1.9053 on Monday morning to 1.9435 by Friday night.
Here too we had more good news to report on. The pound began the week on 1.4449 and closed a few days later on 1.4646.
The British pound started off on 205.838 on Monday morning. By the time Friday evening rolled around it had soared to 208.176.
All in all then, the British pound had a ‘sterling’ week last week, achieving a variety of excellent results against all kinds of currencies. It seemed to have lots of strength and was able to have just the odd day when the opposing currency did a little better. However in this case it was merely a question of trying to stem the losses that currency had experienced against the pound.
With such a good week though, it does make you wonder whether the pound will struggle a little more in the weeks to come. It is far from easy to have weeks where the pound continually increases in value week after week. Perhaps things will be different next week. We shall see.