Posted by Allison on 25 June 2018, 14:29
Welcome to our next currency report. We have a chance to explore the adventures of the British pound over the most recent trading week, so let’s begin now.
The exchanges between the British pound and the US dollar could be divided into a week of two halves this time around. The pound started on 1.3279 this week, before diving over the next two days to reach 1.3152 by Tuesday evening. Fortunately, things got progressively better from then on. By the time Friday night arrived, the pound had managed to recoup all its losses and then some. This meant it closed on a slightly more encouraging rate of 1.3287.
One never knows quite what to expect when the pound faces up to the euro, and that was true this week as well. The pound opened trading on 1.1452 before falling over the course of three days – thereby doing worse than it had against the American dollar. It also meant it dipped to 1.1379 by the time Wednesday evening rolled around. Thursday was better, as the pound rose to 1.1445, but while it was within touching distance of the opening rate it had started the week with, it would not regain it. Instead, it dipped to 1.1407 to close out Friday night.
Our next stop sees the pound beginning the week on 10.423 against the Hong Kong dollar. Two poor days were to follow, just as they had against the US currency, taking the pound to 10.323 as a result. The good news was that this was again the turning point, which left us with three positive days to close out the week. The pound ended up finishing just above its opening rate, rising to 10.425 by the time the week was out.
Would we get a similar response to the New Zealand dollar, or would things be very different in that part of the world? The British pound opened proceedings on a rate of 1.9097 before falling to 1.9065 on Monday evening. From there though, the next three days took a very different turn. By the time Thursday evening arrived, the pound was sitting at 1.9281 – the highest point of the week. That did mean we were going to drop back on Friday, to 1.9255, but this was still far and above a better rate than we had hoped for.
The Australian dollar would try to give the pound a run for its money, but this would not turn out to be the case. The pound started the week on 1.7771, rising over the course of the first two days to reach 1.7897 on Tuesday night. Unfortunately, the pattern after that was down-up-down, and that meant the highest rate of the week (1.7928 on Thursday) was not the one we ended on. We instead finished on 1.7887 against this dollar currency.
Here was a pattern we had not seen for a long while. We got the opening rate of 1.7433 to reach as high as 1.7634 this week – an encouraging week all told.
Here, things were very different. While we did see a couple of promising days, the overall trend was down, taking the pound from 1.3255 to 1.3157.
We could hardly tell which currencies were progressing in which direction, which meant the pound ended up rising against the krona, from 142.808 to 144.416 this week.
So, we have some interesting results this time around. Will we get another set of similar results next time, or will there be more drama on the markets? We can virtually guarantee the latter, no matter what happens, so we shall be back next week with more news about the British pound on the currency markets.