Posted August 19, 2013
This is the question we always ask ourselves and today we will get the answers that were revealed last week on the currency markets. Would it have any strength to perform well against the usual suspects – or would it not?
As the week got underway the US dollar was standing at 0.6599 against the British pound. However by Monday evening it had dropped to 0.6519. Was this a bad omen for the remainder of the week? The opening rate against the Euro was 0.7574 and there was a drop in store here too, sending the dollar down to 0.7543. The dollar started on 0.9378 against the Swiss franc and once again the overall trend was down, as it closed Monday evening on 0.9317.
There was little movement between the dollar and the British pound today, although what little change there was went in favor of the dollar. Another drop was noted against the Euro too, as the dollar fell back to 0.7530. Today’s drop against the Swiss franc was not as big as yesterday but it did still fall below 0.93, reaching a low of 0.9271 in the process.
After yesterday’s marginal improvement against the pound things changed markedly today. The dollar ended up dropping back to close on 0.6460, making us wonder where the rest of the week would take us. By now there was a pattern developing against the Euro, whereby the dollar would lose a little ground each day. Today was no different, as it was reduced to 0.7515. Another drop was predictably in store for the dollar against the Swiss franc, closing on 0.9260 by the end of the day.
There was predictably another drop in store for the dollar today as the pound pushed it back to 0.6452. It made us wonder whether we could pull back anything as we approached the end of the week. Today also saw the dollar fall below the 0.75 rate against the Euro, as it reached a low of 0.7485 for the week so far. The second biggest drop of the week occurred against the Swiss franc too, as the dollar fell back to close out the day on 0.9211. Where would it all end?
If yesterday’s question had us thinking, today gave us the answer. The dollar did fall back a little more and we finished up on 0.6440 as a result. Perhaps predictably the dollar also finished up lower against the Euro, reaching its lowest rate for the week of 0.7477. The last rate of the week came against the Swiss franc and there was no chance of getting an improvement either. The downward spiral was halted by the weekend and nothing else, as the US dollar closed on 0.9205. It had been a poor performance across the week by the dollar – perhaps next week will bring better news.