Posted by Allison on 18 July 2011, 14:00
So here we are again with another round of currency news for you. Will the British pound be doing better on the currency converter or will we be struggling to keep up once more?
Here are the answers we are looking for.
The last time we caught up with the pound versus the US dollar it was bagging a rate of 1.5944. Could we now press beyond this and gain a better rate?
The first day was encouraging as we went to 1.5960 but then we slipped back again. But just as it began to follow a predictable pattern the pound pushed up to 1.6121 on Thursday evening. It slipped only the tiniest of amounts to end up on 1.6120 on Friday night. A good start to the week for sure.
Next up we have the Euro, where the pound ended on 1.1195 the previous week. The very first day of the new week saw the pound land on 1.1354, and it didn’t relinquish that territory for the entire week. This meant that it ended on a highly respectable 1.1396 as a consequence.
So could we get a similarly good result against the Hong Kong dollar? Our starting point here was 12.407 and although we dropped to 12.339 a couple of days later it didn’t spoil the overall success of the week. We managed to end on a fantastic rate of 12.563 as a result.
So it’s three out of three good results so far. Would the New Zealand dollar follow the pattern as well?
An opening rate of 1.9156 improved to 1.9312 by Tuesday night. But although we held that territory for a couple of days we slipped back to close out the week on 1.9162. This was still marginally better than the rate we had started with however.
Finally we have the Australian dollar, where we last had a rate of 1.4813. Could we beat this to close out a pretty successful week? The answer was the best one of all, as we crept up to 1.4951 the next day. We then managed to improve our standing and grab a rate of 1.5115 to close out the week with. A good performance all round for the pound – for once at least.
There was good news here as well as the pound climbed from 1.5276 to 1.5440 over the course of the week.
There was bad news here though as the Swiss franc did better than the pound. The pound fell from 1.3549 to 1.3193 as a result.
The pound did better against the Indian rupee during the course of the week, climbing from 70.787 to 71.761 in the process.
Even though the British pound had a good week overall, it was not without its dips. This much was indicated in the selection of reports that hit the financial headlines last week. A typical example was the reaction of the Reuters website to events on the 14th, as this article indicates. This was not the best day for the British pound, but at least it did well over the week as a whole. We don’t have many weeks where it manages to perform quite so well over the five days of trading, so we must take our gains where we can find them.
It is clear that there is much to be learned from exploring the markets on a weekly basis. Even thought the recession is behind us we are still struggling to keep it completely at bay. Perhaps the pound is heading for a few more tough months to come, as all the currencies try to do their best in a challenging market.