Posted by Allison on 1 November 2010, 16:49
Last time we reported on something of a middling week for the British pound. We had some mediocre results and now we’re hoping that things will look better on the currency converter this time around. Let’s see just how good it looks shall we?
1.5703 – that was the closing rate for the pound last Friday against the US dollar. But when the curtain went down on Monday night we’d crept up marginally to 1.5720. Luckily other increases were also on the way, with 1.5865 reached the very next day.
A slight dip midweek then led to better things to come, as the pound eventually finished on 1.5953. It couldn’t have been much better for the pound here.
Moving on to the Euro, the pound was last seen hanging onto a rate of 1.1270. Monday didn’t make things look too pleasant as the pound ended up on 1.1203 at the close of play. But as things turned out that was as bad as it would get. The pound steadily increased from here on in, and finished on Friday night with a fantastic 1.1512 to show for its hard work.
With that positive result in mind, the battle against the Hong Kong dollar ended dismally on 12.194 last time. But we had similar good news here, after a small rise to 12.199 on day one. Day two of the week had us in an even better position with 12.308 on the cards. By the time we’d done battle against the Hong Kong dollar for a whole week, we had managed to finish up on 12.372 for a total success against a third currency.
Where would this pleasant story end though? Would we manage to do just as well against the New Zealand dollar too? The starting rate was 2.1003 but an alarming dip to 2.0864 made us wonder whether our luck had run out on day one. We actually managed to bounce back to 2.1207 on Thursday before dropping the ball and finishing (albeit slightly better off still) on 2.1045 at the close of the week.
Finally we should catch up with the Aussie dollar, to see how the pound did here. We were starting from 1.6001 so hopefully we would improve on that to some extent. A similar initial drop to the one we’d seen against the Kiwi dollar was experienced initially though, sending us down to 1.5805. But luckily we experienced a good bounce back – even better than the one we’d seen against the Kiwi dollar. This meant we finished the week in style on 1.6366.
So all in all it wasn’t a bad time at all.
It was good news here for the dollar as it climbed from 0.7176 to 0.7216 by the time the week was out.
It was a similar story for the Canadian dollar as it saw a steady rise from 0.6993 to 0.7067 against the European single currency before the week was out.
It wasn’t such good news for the Swiss franc though, as it ended up falling from 0.7389 to 0.7295 against the Euro.
The strong yen is causing some concern on the markets at the moment, as this report from the FT.com website illustrates. Make sure you sign in for free to read it. It gives an overview of many different events that could or may affect currency trading – and therefore the exchange rates – in the days and weeks to come. As a way of monitoring movements at the end of October as we prepare to go into a fresh month, it makes interesting if slightly alarming reading.
We’ll be back next week with more news.