We haven’t taken a closer look at the battle between the British pound and the Japanese yen for a while, so perhaps we should focus our attentions on this pairing on the currency converter this month. At the end of November the pound was worth 121.523 against the yen, but would it rise or fall from this moment on?
The early indications were good as the pound finished the first week on 122.355. But it then dropped back a little for the second week, making very little change in the currency conversion rate as a result. It finished up on 121.842 by the time the week was over though, so it had regained a little ground.
However the onus was definitely with the Japanese yen for the following week. It managed to keep the pressure on and eventually pushed the British pound back to a rate of 120.992. It certainly didn’t seem as though the pound was going to achieve anything remarkable during the final month of 2011. Perhaps it would be best to wait until the New Year dawned, in the hope that we could achieve something better then?
The following week was better for the pound though. On Tuesday we climbed to 121.749 and the very next day we were boosted once again to 122.143. We managed to hold onto these increases as well, finishing the week on 122.350 as a result. This took us into Christmas week so there was very little trading in between Christmas and the New Year celebrations. In fact we might have wished that we could achieve rather less than we did, because we ended up dropping our guard and falling back to 119.956 to close out the year. This was disappointing as we had seen much better results just a few days earlier.
However it was now down to finding out whether 2012 would have a better start for us. Hopefully we can see healthier results for the British pound against the Japanese yen, but we shall have to wait and see whether this actually comes to pass or not.
I wonder how much the festive break actually affects the currencies. The pound seemed to be doing alright here until Christmas came along and then it slipped its guard and dropped back. I know people go for a break at Christmas and the New Year, but how much does it make a difference to the exchange rates? It’s never going to be any different but it does make you wonder – at least it does me!
I’m not sure the festive break makes a lot of difference. As far as I can tell things seem to settle down over the few days that people do trade. It’s almost as if they can’t be bothered to do much trading during that time, so they wait and get the festive season done and dusted before trading properly again. I’d love to know if traders would agree with this though!
Personally I wouldn’t do any trading during that time of year. I’ve got better things to worry about! Mind you I suppose there could be a few good trades to be had if you knew where to look for them. World events still carry on after all; surely that must affect some of the currencies? But then if they weren’t there to trade with them there is less of a window for bad results to come through I suppose.