Trans-Atlantic Exchange Rate Report for April 12th – 17th

By: Matthew Natof, The Quinnipiac University Global Economics Research Team

Trans-Atlantic Currencies Index

Source: Yahoo 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.

From April 12th-17th, the Trans-Atlantic currencies followed a similar contour. The Canadian dollar (CAD) depreciated for most of the week, finishing with the largest decrease of -1.08%. The Swiss franc (CHF) dipped early in the week, but appreciated slightly in the latter half, ending at a -0.84% decrease. The euro (EUR) followed a similar path, depreciating early and ending with a -0.73% decrease. The pound (GBP) depreciated immediately but appreciated for most of the week and still ended with a change of -0.66%.

Trans-Atlantic Historical Trends

Source: Eurostat 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 April 13th-17th, three of the Trans-Atlantic currencies shared a common trend. The outlier, the Canadian dollar (CAD), posted a constant increase, ending right above its three-month average. The Swiss franc (CHF) rose at first but then fell back down to its starting value this week, right below the three-month average. The euro (EUR) followed a similar pathway but sits just below its upper bound. The British pound (GBP) was similar to the previous two but depreciated more than the others, now resting between its upper bound and three-month average.

Additional Reading:

Canadian dollar hits one-month high as Iran says key waterway open

The Canadian dollar has reached a one-month high due to Iran’s opening the Strait of Hormuz. It is the currency's highest value since March 13th, and its biggest weekly gain since January. The reopening boosted market confidence, supporting the Canadian dollar as an oil-exporting currency.