Posted May 09, 2013
Some weeks provide us with a distinctive pattern on the currency markets. Would this be one of them? It certainly seemed as if the dollar was mirroring its efforts across the markets when we looked at separate currencies.
As the week got underway, the dollar started poorly against the British pound; it fell from 0.6462 to 0.6436 today. Elsewhere, the dollar dropped from its opening rate of 0.7692 to 0.7626 against the Euro, so it wasn’t a good start there either. A third European currency was also set to make trouble for the dollar, this time in the shape of the Swiss franc. Here the franc managed to push the dollar down from 0.9441 to 0.9363 by the time the first trading day was over.
After yesterday’s lackluster start against the pound, the dollar perked up a little today and managed to get back to 0.6458. It was a similar picture against the Euro, where the dollar rose to close out the day on 0.7649. However things would be different against the Swiss franc, where the dollar fell from 0.9363 to 0.9362. It was only a marginal change but it did represent a change we were not used to.
There was no change against the pound today: giving the dollar a chance to rest on its laurels and us a chance to wonder how the rest of the week would pan out. The same applied against the Euro, where it was a little lower than it had been at the beginning of the week. And it was three in a row with no change against the Swiss franc. If only we had the chance to have this respite against other currencies in the middle of every week.
After yesterday’s break, today didn’t resume too well. The dollar fell back to 0.6418 against the pound so it was still struggling to achieve anything of note. Again the same happened against the Euro; here the dollar fell to 0.7580 so there was little hope the US dollar could achieve a good result by the end of the week. Perhaps predictably we managed to lose ground against the Swiss franc as well, as the dollar fell a little further to 0.9282 by the time the day was done.
Finally we achieved a little forward motion against the pound, rising to 0.6429 in the process. It almost seemed as if the dollar was mirroring this with the Euro, because we got a similar result here as well. Indeed, we managed to creep up to 0.7625 against the Euro, so it was not all bad. However, perhaps the best result was reserved for the Swiss franc, where the dollar managed to close out the week on 0.9329. This was significantly better than we had seen for a few days, so perhaps we could save the best for last.