Trans-Atlantic Exchange Rate Report August 11th-15th

By: Isabella Cortese, The Quinnipiac University Global Economics Research Team

Trans-Atlantic Currencies Index

Source: Eurostat and own calculations. Exchange rates are inverted to be USD per local currency (i.e., an increase indicates a stronger domestic currency) and then indexed to be 100 at the start of the period.

During the week of August 11^th to August 15^th, all currencies showed mixed performance with early gains followed by midweek declines. By August 11^th, the Canadian dollar (red) and Swiss franc (maroon) led with increases of about 0.45% and 0.40%, while the euro (blue) rose more modestly to around 0.30% and the British pound (green) remained flat. However, sharp declines occurred around August 12^th–13^th, with the euro and Swiss franc falling to roughly -0.5% and the British pound dropping the furthest to nearly -1.0%. The Canadian dollar held up better, maintaining positive territory even during the downturn. Toward the end of the week, all currencies somewhat stabilized, with the Canadian dollar rebounding to about 0.4% while the others remained in negative territory. Overall, the week highlighted resilience in the Canadian dollar, while the British pound showed the weakest performance.

Trans-Atlantic Historical Trends

Source: Yahoo Finance and own calculations. Exchange rates are inverted to be USD per local currency (i.e., an increase indicates a stronger domestic currency. The center line is a rolling three-month average. The upper and lower boundaries are the average plus and average minus one standard deviation, respectively, for the same three-month period.

From early May to mid-August, the four tracked currencies showed mixed but generally positive trends against the USD, with noticeable volatility in late July and early August. The Canadian dollar (CAD) rose steadily through May and June, peaking above 0.735 in early July, before declining gradually through August to finish closer to 0.725. The Swiss franc (CHF) climbed consistently through late June and surged in early July to above 1.26, its strongest point in the period, before easing back to around 1.23 in August. The euro (EUR) advanced sharply from mid-May onward, rising from below 1.13 to nearly 1.18 in July, before experiencing a brief pullback and stabilizing slightly lower in August. The British pound (GBP) displayed more volatility, climbing from around 1.33 in May to above 1.37 in July, but then falling sharply in late July before recovering partially in early August. Despite these fluctuations, the euro and Swiss franc ended the period with sustained gains, while the Canadian dollar and British pound showed weaker momentum into August. In short, the data reflects broad mid-summer strength in European currencies relative to the USD, with some declines toward the end of the period.