Posted by Allison on 19 February 2019, 06:32
We are all set for disappointment this week, as is about to become clear in our review of the currency markets. Would the pound present us with anything to be glad about?
The week began with the pound standing at 1.2950 against the US currency. Where would it go from here? The early pattern was set with a drop to 1.2857 on Monday, before the following day saw a better performance ending in 1.2894. We then experienced another fall to close out Wednesday on 1.2847. More of the same followed on Thursday, with the British pound stalling on 1.2822 that day – the lowest rate seen for the whole week. While it did manage to regain some of the losses for the final day – finishing on 1.2893 as a result – it was not enough to count the week as a success.
It is difficult to know what to expect from one day to the next against the euro. However, the overall pattern here was much the same as the one seen against the dollar. We opened on 1.1424 before falling over the first two days this time, taking the pound to 1.1382 by Tuesday night. We did better midweek, rising to 1.1407 on Wednesday before dropping once more the next day and finishing that one on 1.1350. While there was some improvement on Friday, the pound ended the week on 1.1415 there, a small loss overall.
The differences between the British pound and the Hong Kong dollar were perhaps not as clear cut as they had been elsewhere so far. However, we still had a disappointing week overall. Beginning on 10.162, we then went down to 10.090 on Monday before recovering to 10.120 the next day. However, from that point we had two poor days in a row, taking us to 10.062 by Thursday. So, while Friday produced a better outcome of 10.118, it was not enough to regain the starting rate we had experienced on Monday.
If we had seen falls elsewhere so far this week, we would not be prepared for what would happen against the New Zealand currency. We often see major differences here during the space of a single week, so it was not surprising we would see the same here as well. Opening on 1.9207, we fell to 1.9090 on Monday before rising to 1.9140 the next day. However, we then had those two poor days just as we had against the Hong Kong currency. That resulted in a low rate of 1.8756 on Thursday. Friday’s rise to 1.8778 was therefore not enough to wipe out the losses seen so far.
Since the picture against the Australian dollar is often very similar to that seen against the New Zealand one, we can guess how this part of the week would pan out. However, it was almost downhill all the way here, with no respite or glimmer of encouragement anywhere in the middle. Instead, we went from 1.8270 to 1.8047 over the entire week.
Here too the pound lost some ground last week. Fortunately, it did not lose quite as much as it had elsewhere. Instead, it dropped from 1.7197 to 1.7077.
This currency pairing began the week on 1.2947 before ending it on 1.2960, so there was nothing much to report there of any great changes.
Here, the pound began trading on 156.080 before dipping across most of the week and finishing on 153.221.
So, once again we have a week that is far from memorable for the British pound. Perhaps we could hope for some better results next time around, but with great uncertainty in the markets at present, it is unlikely we will see anything more promising to report on soon. We can but hope we are wrong about that.