Posted by Allison on 10 October 2018, 20:07
Welcome back to our latest look at the state of the currency markets. Would the pound make it a good week this time around or would there be another result to contend with?
This week began with the British pound on 1.3046 against the US dollar. Unfortunately, it didn’t begin well as the pound dropped to 1.2963 by Tuesday night. A slight rise to 1.2990 came on Wednesday before another drop took it back to 1.2984. Would this be one of those weeks where the best news came last? It would – the pound managed to rise to 1.3050 by Friday night, achieving a good overall result against the US dollar.
It is all but impossible to guess where things will go next between the pound and the euro. Thankfully, this week went in our favour. The pound started on 1.1270, and although it fell to 1.1226 on Monday, the remainder of the week brought much better news. Four steady rises didn’t trigger any big headlines, but together they brought us a much-improved rate of 1.1342 by Friday night.
Our third stop takes us over to Hong Kong, where the pound got underway on 10.208 against their dollar currency. This followed the same pattern we had seen against the American dollar, with ups and downs producing an uncertain pattern throughout the week. But again, just as the pound had ended up slightly better off against the US dollar, so the same occurred here. By Friday night, the pound had closed out the week on 10.223.
Next, it’s on to New Zealand. Could we do better here as well? Opening trading on 1.9728, the first two days did not go our way. By Tuesday evening, we’d dropped to 1.9679. That gave us much ground to recover, but we managed to do just that. In fact, the final three days of the week did far more. By the time Friday evening arrived, the pound had managed to achieve more than we had hoped for. It finished on an impressive 2.0171.
Oftentimes, the result we see against the Kiwi dollar is very similar to the one achieved against the Australian dollar. Would that be the case this time as well? We opened proceedings on 1.8086 this week, and we saw an identical Monday dip that took us to 1.8040. While we had another dip on Tuesday against the Kiwi dollar, that didn’t happen here. In fact, from here on in it was nothing but good news. So much so, we ended up with a rate of 1.8454 by Friday night.
The pound didn’t manage to do well here last week. It began on 1.6977 and never managed to remain there. Instead, it fell to 1.6857 by the time the week was done.
That performance doesn’t always guarantee the pound will win out the week, but it did this time. Beginning on 1.2753, it managed to attain a closing rate of 1.2967 five days later.
We had an excellent result here as well. From a starting rate of 145.046, the pound managed to improve from one day to the next. It reached 148.698 by the time Friday was done.
So, this was a successful week whichever way you looked at it. With lots of great results no matter which currency you were looking at, there was much to celebrate. Of course, we know one good week will not necessarily lead to another. However, there is plenty of reason to be positive and to hope things will continue in the same vein next week. Fingers crossed that happens, but we will of course be back here with the results as they become available. Will we be celebrating again next week? We can only hope that happens once again.