Posted November 27, 2012
You can never quite tell how the currency markets are going to play out. Sometimes the US dollar will have a great week and at other times it will struggle for every small improvement it makes – as was the case last week.
So the week began with the US dollar standing at 0.6296 against the British pound. This slipped to 0.6293 on Monday evening, so very little change on day one. The dollar started on 0.7846 against the Euro, and lost ground there too, falling to 0.7835 by the close of play. The dollar started almost on parity with the Canadian dollar, on 1.0006, but it fell back to 0.9985 at the end of the day. So it was a challenging start to the week – the question now was how it would continue.
There was another slide in value for the dollar versus the pound today, as it fell back to 0.6281. It became a similar story against the Euro, because the dollar fell to 0.7807 here as well. There was bad news against the Canadian dollar as well, where the US dollar fell to 0.9957. Today was clearly not the best day as far as the US dollar was concerned.
It didn’t seem to be a good week as far as the dollar versus the British pound was concerned. By the time today was over the dollar had lost more ground, falling back to 0.6276 in the process. There was some good news though, as the dollar crept up a little to 0.7809 against the Euro. Another piece of good news came against the Canadian dollar, where its US counterpart managed to rise to 0.9975 at the close of play.
If we wanted the dollar to do better against the pound today we were disappointed. Instead it fell back to 0.6264. Yesterday’s tiny glimmer of good news against the Euro was erased today as the dollar dropped to 0.7756. And the same was true against the Canadian dollar, as the US dollar fell to 0.9959. But would it all be a day too soon to be able to finish on a good note?
Finally there was a glimmer of hope for the dollar today as it went up against the pound for the last time this week. It closed on a slightly better 0.6275. But there would be no such good ending in store against the Euro, where the dollar fell back to 0.7746 to close on the lowest rate for the week. The dollar did manage to edge up slightly against the Canadian dollar though, finishing on 0.9965 in the process. This was still lower than it had started on at the beginning of the week though, so it was not all good news. Clearly it had been more than a challenging week for the US dollar.