Drama and Intrigue on the Currency Markets

Posted by Allison on 27 November 2013, 13:43

Here we are again with another currency report, which this time takes us almost up to the end of November. We have just another week to go before the final month of 2013 gets underway on the currency markets. Until then, what happened last week?

An overview of the currency markets for November 18th – November 22nd 2013

So let’s see how things got underway for the new week, as we approach the end of November (and indeed the end of the year). As the pound opened things against the US dollar, it started on a rate of 1.6067 and picked up to 1.6114 by the end of day one. This fell slightly the next day before picking up again to close on 1.6148 on Wednesday. It was clearly an up and down week though because the pound dropped again on Thursday before leaving the best for last – a rate of 1.6200 to close with on Friday night.

After this seesaw affair it became clear the pound could be in for a dramatic week. Would this be borne out against the Euro as well? The opening rate was 1.1937 although this fell to 1.1921 by Monday evening. Fortunately things were back on the up and up the following day as the British pound improved to 1.1926. Here is where things changed though with regard to how the pound looked against the Euro. It still had ups and downs to conquer against the dollar, but here it was only achieving better results every day. This led to a healthy week ending rate of 1.1984.

Our third stop is with the Hong Kong dollar. The pound sat at 12.458 as the week began, and while it improved to 12.493 on Monday it dropped back to 12.482 the next day. This turned out to mirror the rates we had seen against the US dollar, as the up and down state of affairs was achieved here too. The final rate of the week turned out to be 12.560, so we were still able to do well all in all.

As far as the pound against the New Zealand dollar was concerned, the pound started on 1.9357 and immediately dropped to 1.9256 by the end of day one. This was a disappointment, but fortunately it turned out to be the only one of the week. From this point on the British pound managed to improve on a daily basis. In fact the improvements were significant, especially towards the end, and they led to a week ending rate of 1.9864.

So which way would things go against the Australian dollar? Would it mirror the pattern we had seen against the US dollar, or would it be all good news as it had been against the New Zealand dollar? The opening rate was 1.7216 and we did see the initial drop on day one, taking the pound to 1.7141. But after another slight drop the next day, things soon managed to get better. The pound got stronger from that point on, taking the currency to a closing rate of 1.7672 on Friday.

Notable events in the world of currency

A good result against the Canadian dollar too

Here the pound managed to improve from 1.6813 to 1.7076 overall, giving us another good result to be pleased about.

A dip, but an overall improvement against the Icelandic krona

The pound started the week on 197.408 here, but it soon fell back to 195.245. It did get a better end in place though as it improved to 197.760 on Friday evening.

A marginal increase against the Swiss franc

Here the pound started on 1.4737 and finished on 1.4743, adding on just a little in between.

So it was a dramatic week to be sure, and the British pound had more to celebrate than commiserate. However tomorrow is another day, and next week holds fresh challenges for the British pound. We will be back to provide you with the answers you need relating to the currency markets.