Posted by Allison on 8 August 2011, 13:30
The British pound had a reasonable week last time we caught up with it on the currency converter, but would this lead into a good week this time around? With trouble and strife occurring in the Eurozone as well as in America, it seemed like a good time for the pound to pounce. But would this actually happen?
So here we are in the first trading week of August, and the pound had a 1.6299 start to trade with against the US dollar. We had an initial jump to 1.6389 but it soon became clear that we were in for an up and down week. Indeed the final graph had two peaks in the middle, meaning that the pound finished up on a lower rate of 1.6287 in one of the valleys instead.
Could we do any better against the beleaguered Euro as it tried to regain some kind of strength? Our opening rate here was 1.1430 and we immediately fell back to 1.1369 on day one. But there was better news in store here as we managed to put our best foot forward for the rest of the week. Eventually we ended up with a healthy rate of 1.1506 as a result.
Let’s move on to the Hong Kong dollar now to see whether we could do well there also. We didn’t move at all last week, leaving us with an opening rate of 12.703 now. But again we saw the peaks and troughs as we jumped to 12.769 on day one and then fell back to 12.668 the day after. Luckily the final news was good as we managed to finish on 12.715 for the week as a whole.
We had a marginal increase against the New Zealand dollar last week and finished on 1.8850 as a result. But there was far better news in store this week – it seemed as if the only way was up. There was a big dip on day one but after that there was nothing at all to worry about, as we finished up on an amazing 1.9446 on Friday night.
Finally we have the Australian dollar to think about. Here we dropped a little last week and ended up on 1.4916. But we followed a pattern that was very similar to the New Zealand dollar, with a drop on day one and then nothing but good news after that. This time it meant we finished on 1.5577.
There was good news here as well last week as the pound went from 1.5495 to 1.5993 by the end of the week.
If we had seen a huge rise against the Canadian dollar we were in for a swift fall against the Swiss franc. Here we dropped from 1.3051 to a woeful 1.2481 by the end of the week.
The pound didn’t do well here either, going from 2.8338 to 2.8090 as a result.
There were two major news stories hitting the headlines last week. The first was the continued worry over the state of the Eurozone, even after a rescue package was agreed for Greece. The second was the downgrading of the American credit rating, even after a last minute deal was reached for the national debt. It would seem that nothing but the best solution would be enough to calm the markets.
The result of all this was that the yen and the Swiss franc became popular currencies during the week, as this FT.com story attests. The state of the financial markets is very edgy at the moment, and there is no doubt that this will continue to affect exchange rates for a long time to come.