Posted July 18, 2013
Some weeks may be good while others are bad, and still more exhibit a mix of the two directions as the currencies try to gain a foothold against each other. Would this turn out to be a week where we got a little of both?
As the week began, the US dollar started on a rate of 0.6679 against the British pound. It had a great day to start off with, as it rose to 0.6705 by the end of Monday’s trading. The week started with an exchange rate of 0.7762 against the Euro, but this also improved to 0.7782 by the end of the day. There was another good result against the Swiss franc, as the dollar improved from 0.9584 to 0.9652 by the time the first day of trading was over for the week.
After yesterday’s excellent start to the week, things got better still today, although by a smaller amount. The dollar rose to 0.6727 against the pound. However things were not as promising against the Euro, where the pound fell to 0.7777 at the end of the day. With this mix of results so far, how would the dollar fare against the Swiss franc? The answer was that it improved again, taking the dollar up to 0.9685 in the process.
It was inevitable the dollar would slip a little in the end, and that’s what occurred today. By the time trading was done, the dollar had fallen back to 0.6713. It was the opposite picture in Euroland though, where the dollar improved to 0.7804. It looked good against the Swiss franc as well, because the dollar managed to up things to 0.9708 by the close of trading.
There was another drop against the British pound today, as the US dollar fell to its lowest rate so far this week, falling to 0.6615 in the process. After yesterday’s good news against the Euro, there was a complete about turn today as the dollar fell to 0.7666. If things went well against the Swiss franc yesterday, they were the complete opposite today. Instead of improving, the dollar dropped all the way back to 0.9517.
How would the dollar close out the week against the pound? The answer was with a slight improvement on yesterday, although it was only up as far as 0.6618 by the close of the day. There was a similar occurrence against the Euro too, where the dollar rose slightly to close out the week on 0.7672. We were hoping the dollar would be able to get back some of yesterday’s significant losses against the Swiss franc, but it didn’t happen. Instead it fell a little further to close the week on 0.9504. This had been a week filled with ups and downs, some more notable than others. Perhaps this was to be expected – although it will be interesting to see if the pattern continues next week.