Posted by Allison on 12 October 2016, 13:35
After that introduction, it is clear the British pound is not going to be in for a good time this week. But how bad would it be?
The pound was worth 1.3175 against the US dollar at the start of this week, but we did not have a good start at all on this occasion. We experienced two drops over the first two days alone. This led to a rate of 1.2972 by the time Tuesday evening rolled around. From then on we had a couple of better days, and that meant the pound improved to 1.3078 by the time Thursday night rolled around. However, with just one day left to go, it soon became clear the pound could not even get back to its starting rate. Instead, it dropped a little more and finished the week on 1.2973.
Across to Europe now to see how the pound would perform against the euro. We began trading on 1.1736 here, but once again those first two days were not as good as we hoped they might be. Instead, we dropped back to 1.1599. We were hoping we would then get two good days but in reality we only had one. Wednesday saw us claw back some of our early losses, reaching 1.1669 that night. After that though, we had only one way to go by the look of it. This meant we ended up on 1.1569 by the time the week was up.
So with two poor results thus far, how would things pan out against the Hong Kong dollar? Our opening exchange rate was 10.222 and once again, we had the exact same pattern we’d seen against the US dollar. The first two days were poor and saw us retreat to 10.062. After that, we had two good days that got us back to 10.143. However, the final exchange rate was low once again, as we dropped to 10.062 once again – the lowest point of the week.
So, could we hope to achieve anything at all against the New Zealand dollar or the Australian dollar? Let’s look at the Kiwi dollar first, where the pound started out on 1.8035 before falling to 1.7653 on Tuesday. Not a good start over those two days. However, the rest of the week was much better, with the pound getting the better of the Kiwi dollar for each of those days. With that said, the final rate on Friday night was still only 1.7857.
But perhaps we still hadn’t seen the worst yet. We won’t keep you in suspense now, as the situation with the Australian dollar was particularly disappointing. From a starting rate of 1.7545, the pound dropped in value on every single day this week. This meant that by Friday, it had reached a low of 1.6989 – considerably lower than we may have thought.
The pound couldn’t achieve anything of note against the Canadian dollar either this time around. Instead, it fell from 1.7390 to just 1.6920.
Here too there was no real excitement to be had. Especially not when we realized the pound fell from 1.2841 to just 1.2595.
In Iceland, the pound began trading on 151.493 before falling all the way back to 148.577 this week.
It’s clear there is no good news to be had anywhere this week on the currency markets – not for the British pound anyway. It does however make us wonder whether the pound will be in for another rough ride next week, or whether it could put in a better performance (even if only slightly).
There is a chance things could get better soon, but we feel the British pound has a long way to go to attain the figures it was achieving much earlier in the year. We’ll keep you posted.