Cautious Optimism for the British Pound

Posted by Allison on 31 May 2017, 17:52

Welcome back to another currency report, as we speed through to the middle of May. Will we speed towards some good results here, or is there more to see?

An overview of the currency markets for May 15th – May 19th, 2017

As the week got underway, the British pound began with a rate of 1.2857 against the US dollar. This soon improved to 1.2919 to get off to a great start for the week on Monday night. Although we dipped slightly on Tuesday, we returned to better rates over the next couple of days. That meant the pound could reach 1.3037 by the time Thursday night arrived. So, while we dipped to 1.3012 on Friday night, this still marked a successful week for the British currency.

Would we do the same against the euro, though? We began trading on 1.1822 here, before falling over the course of the first two days of the week. That meant we stalled on 1.1645 by Tuesday night, leaving us wondering how the rest of the week would progress. As it turned out, the next two days were much better, taking us back to 1.1714 by Thursday night. However, there was one final drop in store, which meant the pound finished weaker than ever on 1.1640 on Friday night.

Over to the Hong Kong dollar now, and the pound started trading on 10.020 here. This improved to 10.060 on Monday evening, but we then dropped back to 10.032 the next day. This meant we didn’t have much idea of where things would go next. There was better news in store, though, as we had two stronger days that resulted in the pound closing out Thursday night on 10.146. However, a final drop to 10.126 was seen on Friday, although this still equated to a good performance across the week.

Next stop is the New Zealand dollar, where the pound started the week on 1.8787. Once again, the first day wasn’t too encouraging, as we dipped to 1.8692. However, two better days then followed, taking the pound back up to 1.8811. We then had one poor day and one better one to finish on, so by the time Friday night arrived, we were settled on 1.8888. That meant we had done well over the course of the week, despite the ups and downs we had seen.

Finally, let’s see whether the pound could do well against the Australian dollar too. We began trading on 1.7415 in this part of the world, before dropping to 1.7357 on Monday. But then, while we thought we would have two good days to enjoy, we had three – taking us to a healthier 1.7521 on Thursday night. So, while we fell to 1.7496 on Friday, this still meant we had done quite well across the entire week.

Notable events in the world of currency

A marginal fall against the Canadian dollar

Here, we began trading on 1.7663 before dropping slightly to 1.7657 this week.

A bigger fall against the Swiss franc, however

Things were not as good here, as the pound began on 1.2960 before falling to a disappointing 1.2712 today.

Another fall against the Icelandic krona

While the pound did well in some regions last week, this was not one of them. Instead, it began trading on 134.111, before sliding over most of the days to reach a low of 130.427 by Friday night against the krona.

So, we had some interesting results to contend with last week, as the pound did well in some quarters but disappointed us in others. This means we have little idea of how things might progress over the coming weeks. The added election coming up very soon, and the impending Brexit negotiations, also mean there is further uncertainty, so it is hard to predict what may happen next. We would suspect there will be some ups and downs for the pound though, particularly against the euro and perhaps the US dollar, too.