Posted May 05, 2015
We are aware that some weeks are far more challenging than others. From a very early stage this week it appeared this would be one of those weeks.
As the week got underway the US dollar started at 0.6614 against the British pound, before rising slightly to close the first day of the week on 0.6618. We had the exact same picture against the euro too, as the dollar began on 0.9238 and ended the day on 0.9240. Would these performances bode well or would they be the best we would get? A similarly-mild performance was seen against the Swiss franc as well. The dollar opened on 0.9551 and closed only slightly higher on 0.9579.
We hoped for more of the same today when compared to yesterday, but the US dollar actually slipped. By the end of the day it had settled on 0.6543 against the British pound. Was this boding ominously for the remainder of the week? We experienced something similar against the euro too, as the dollar slipped to 0.9151 today. And yes, we saw another drop too, this time against the Swiss franc. It may have been small in nature but it was still present, as the dollar slid to 0.9576 today.
Another loss was on the cards for the US dollar today. The British pound certainly seemed to get the better of the dollar, pushing it back down to 0.6508 as a result. More of the same came to the dollar by way of the euro, as the dollar lagged behind on 0.9089. The pattern was repeated elsewhere too, as the dollar failed to capitalize on its head-to-head against the Swiss franc. Here the dollar slid back further to 0.9535 today, and by now we were almost expecting more of the same tomorrow as well.
Disappointment was clearly the case this week as the dollar ended today on 0.6479 versus the British pound. It wasn’t the best outcome and we were hoping for better, but the losses had really mounted up over the course of the week. The same could definitely be said of the dollar’s performance against the euro, which also left something to be desired. Today the exchange rate sat on 0.8916 – some 0.0322 lower than it had been when the week had begun. If we were disappointed in the drops we had seen against the Swiss franc so far this week, we would be even more disappointed today. It seemed as though the US dollar was keen to save the biggest disappointment for last. It stood at 0.9349 by the time the day was over, which was considerably lower than it had been at yesterday.
The May Day Holiday fell today for some countries, which meant there was no trading on the currency markets to focus on today. However it did give us time to look back over the week as it occurred.