Posted by Allison on 28 July 2010, 14:56
Here we are again to report back on the first two days of the new trading week on the currency markets. If you remember from last time, the British pound had a mixed week with some good results and some not as promising ones as well. However this was better than the previous report where we struggled to find anything good to say.
The three good results we had to close out the previous week with were against the US dollar, the Euro and the Hong Kong dollar. We didn’t do so well against the New Zealand dollar or the Aussie dollar, but at least our losses there were limited.
So let’s move on and see how the new week began.
Let us begin as usual with the rates against the US dollar. Last time we left things on 1.5404 and by Monday evening we had improved this to 1.5500. This was certainly a good start and we also managed to keep it up. The final figure for Tuesday evening for the British pound versus the US dollar was 1.5548.
We couldn’t have hoped for a better start really, but the question is whether it will be seen against all the other currencies as well. Get your currency converter ready – we’re about to take a look at the Euro next.
Our starting point here is the exchange rate of 1.1944 and we did get the good start we wanted too – with a rate of 1.1986 by Monday evening. Unfortunately in this case we could not sustain it and we ended up on 1.1930 by Tuesday night. So all in all we lost a tiny amount here.
Let’s move on to the Hong Kong dollar now, where we last left things on 11.968. We wanted to follow the pattern set by the US dollar and we certainly did that initially, climbing to 12.041 on the first day. We did better still on the second day as we finished on 12.075 in total.
Next up is the New Zealand dollar, where we begin with 2.1190 to the pound. We started well, climbing to 2.1283 on Monday, but we couldn’t sustain it and fell back to 2.1071 on Tuesday.
Would we see a similar pattern against the Aussie dollar though? Our starting rate of 1.7232 went up slightly to 1.7291 on day one, but fell back (just as the Kiwi dollar had) to 1.7182 the next day.
So it was a mixed start to the week which made us wonder how it would all end.
The Euro had a great start to the week here, climbing from 1.2897 to 1.3033 over the course of two days.
The Euro moved hardly at all here, going from 1.3386 to begin with to a slightly lower rate of 1.3382 on Tuesday night.
The Euro did do better here though, rising from 39.143 to open the week and ending up on 39.355 on Tuesday night.
We have seen some promising results by the British pound against the American dollar recently, and this was borne out by a news story on the Reuters website recently. You can read it here.
Strong sales have been the reason behind this rise, so it will be interesting to see whether this continues in the future. As you will see in the news story the pound hasn’t been this strong against the US dollar in several months, so it is nice to see some good news for a change.
We would like to see better results against the Euro too, but this is perhaps a more complex situation. After the tales of woe surrounding the Euro recently, these seem to have abated for a while. The question is whether or not those tales will resurface at any point.
Regardless of what happens next, you can be assured that we will be back to report on the latest currency news in the next few days.