Posted by Allison on 10 October 2018, 20:02
This would be an interesting week for the British pound. Would it manage to end on a good or bad note? We have all the answers you’ll want, so read on.
The week began with the pound standing at 1.3153 against the US dollar. Where would it go from there? The answer, initially at least, was up. The first three days brought good news, with the pound eventually reaching 1.3175 by Wednesday night. However, that does suggest there is bad news yet to come. Indeed, the final two days saw losses for the pound. By Friday evening, it had dropped to 1.3046 against the US currency. That meant an overall loss of just over a cent.
So, where would we end up against the euro? Brexit uncertainty is hampering our progress here, but it didn’t seem like it hampered us last week. The pound began on 1.1185 and dipped slightly to 1.1178 on Monday night. However, from then on there was just one way to go – and that was up. By Friday evening, the pound was in better shape on 1.1270.
The pattern couldn’t have been more different against the Hong Kong dollar though. The pound began trading on 10.272 here and enjoyed three strong days to start with. This meant the pound reached 10.291 by Wednesday night. However, this was followed by two falls. By the end of the week, the pound was lower than it had been to start with, reaching 10.208 for a disappointing finish.
It was a week split into two against the New Zealand dollar as well. Here, we managed to rise from 1.9693 to 1.9833 over the first three days. With such a good improvement, could we attain a higher exchange rate by the end of the week, even if we fell on the final two days? The answer was yes. Two dips did indeed follow, but these were mild, taking the pound to 1.9728 by Friday.
What would happen against the Australian dollar? We saw a similar pattern to the one we’d seen against the Kiwi dollar, although there were some changes. The pound started the week on 1.8069 before rising over the next four days to reach 1.8207 by Thursday evening. There was a dip on Friday, but would it be enough to wipe out those gains? There was a pronounced dip to 1.8086, but it wasn’t enough to wipe out everything – not quite.
From an opening rate of 1.6998 to 1.7197 on Thursday night, you’d think the pound would make it a good week here. Unfortunately, it dipped to 1.6977 by Friday night, so we just lost out.
Here, the pattern was far better. The British pound experienced four good days followed by a final dip on Friday. However, the trend was good enough to take the pound from 1.2559 on Monday morning to 1.2753 by Friday night.
The pound began the week on 144.742 here, before rising to 146.155 by Tuesday night. Two falls followed, but Friday saw another rise that took the pound to 145.046. Overall, it had done well.
It was a mix of results then this time around. We had some interesting rises and falls that left us uncertain of what the final exchange rates would be come Friday evening. However, overall the pound didn’t have a bad week. There were disappointments to be had, certainly, but there were some good reports to note as well.
The question now is where things will go next week as we head into October. Will we end up achieving some better exchange rates overall, or will we see a mix of good and bad? It’s more likely to be the latter, but no one knows which way the pendulum will swing. We’ll be back next week to reveal more.