Posted July 18, 2016
It would prove to be a challenging week once more for the US dollar this time. There would be few good days to spot, and those that did occur were not enough to wipe out the losses we saw overall this week.
All eyes were on the US dollar and its position against the British pound this week, following the earlier Brexit in June. The US dollar edged up slightly today, rising from 0.7700 to 0.7701 by the day’s end. But would this be as good as it would get this week? We did have more good news against the euro though. The dollar began trading on 0.9033 here before rising to 0.9050. Was this a better sign of things to come? Elsewhere in Europe, the dollar had a good start against the Swiss franc as well. It managed to improve from 0.9805 to 0.9835 today.
If we thought yesterday might have offered an encouraging sign for the dollar versus the pound, that was wiped away today. The dollar actually dropped to 0.7597 – a big drop in a single day. We also had a drop against the euro, although it wasn’t as big as the one mentioned against the pound. Here we ended up on 0.9015 today. The same happened again where the Swiss franc was concerned, as the dollar fell to 0.9830.
More bad news followed for the dollar against the pound today, although the losses did slow to result in a closing rate of 0.7532 today. We did however get back to some good news against the euro, as the dollar edged ahead to 0.9031. The same could be said against the Swiss franc today as well, as the dollar moved up to 0.9852.
The bad news the dollar had yesterday was continued today, as it fell further to 0.7467 against the British pound. Could it stop the rot tomorrow and hopefully get a better outcome? After yesterday’s better performance against the euro, we wondered if we could do something similar today. Unfortunately, the answer was no; instead, the dollar dropped to 0.8962. It looked to be an all-round bad day for the US dollar, because it also fell back to 0.9769 against the Swiss franc. Could it achieve any better to close out the week tomorrow at least?
Finally, today we had a rise against the pound – the first one since the small one we’d seen on Monday. This put the US dollar on 0.7483 to finish the week. We also had a more encouraging finish against the euro this week, as the dollar increased its standing to close on 0.8986 – still lower than the opening rate had been though. A similar picture was borne out against the Swiss franc, where we saw an improvement to 0.9794 – but again, it was not enough to recoup all the losses.