Posted by Allison on 4 April 2011, 11:17
Here we are again with another look at the currency markets. After last week’s poor showing by the British pound on the currency converter, perhaps we shall find better results this time around?
Last time the British pound went up against the US dollar it finished the week on 1.6079. We were looking to improve on that this time, but the first two days saw a drop to 1.5957. Fortunately we then perked back up again and finished up on 1.6041.
After that small loss we move on to the Euro. Here we finished on 1.1392 the week before, and we fell back further to 1.1344 by the 29th. After rallying the following day we lost ground again and finished up on 1.1344 again by the end of the week.
Moving on to Hong Kong now, we were eager to improve on the starting figure of 12.533. Unfortunately it was not to be. We dipped back once more before improving again to 12.510, but that would be as good as it got. We closed out the week here on 12.480.
Next up we have the New Zealand dollar to look at, where we lost a significant amount of ground last time around. We didn’t want to lose the same again, but perhaps we could also turn things around and get back some of those losses?
The starting rate here was 2.1359, but if we wanted to improve on it, it certainly wasn’t going to happen this week. Instead we lost even more ground, and we finished up diving down still further to 2.1007. It’s hard to believe we could have two such disappointing weeks here, but we have the evidence to prove it and we can only hope that things get better very soon.
Finally there is one more stop to make – the Australian dollar. Here we finished the previous week on 1.5729, and after this raft of bad results we were not hoping for anything too impressive. Indeed we were bracing ourselves for another bad result and we got what we were expecting as well.
There was a slight peak during the week as we regained some losses, but that was before the week ending result of 1.5483 was reached. This was not the best time for the pound, and it doesn’t look as if anything is going to change for the better anytime soon either.
Sometimes it is nice to see the results the pound achieves – or does not achieve – against some other more obscure currencies. Here it fell from 9.5723 to 9.5607 over the course of the week.
Here too there was little to celebrate, with a fall from 71.837 to 71.446 for the British pound.
There were a few good results for the pound this week, and it rose from 130.519 to 134.498 against the Japanese yen.
It is always disappointing to have a week where we struggle to find any good news regarding the British pound. But it will happen and we must roll with the punches when it does.
As you might expect there were plenty of news stories regarding the poor performance of the pound over this period of time. One particular story concerned the weakness of the pound versus the Euro, as evidenced by this report on Reuters.
We have said it before but hopefully we can press ahead and find better results to come soon. We may have to wait longer than we would like for them, but we may just end up with some good results coming soon. Until then we have to brace ourselves for the effects of a poor pound.