Trans-Atlantic Exchange Rate Report for April 20th – 24th

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 20th-24th, the Trans-Atlantic currencies varied in their pathways. The Canadian dollar (CAD) bounced around for most of the week, ending at a value similar to its starting place. The Swiss franc (CHF) dipped early in the week but then appreciated to a 0.38% increase. The euro (EUR) was this week’s outlier, appreciating the entire week, ending with a 0.72% increase. The pound (GBP) had a similar outcome to the Swiss franc, ending with an increase of 0.30%.

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 20th-24th, all four Trans-Atlantic currencies shared a common trend. The Canadian dollar (CAD) opened the week with a slight appreciation, ending slightly above its three-month average. The Swiss franc (CHF) followed a similar pattern, appreciating above its three-month average early in the week and depreciating below it in the second half. The euro (EUR) remained fairly constant, ending at its three-month average. The British pound (GBP) was similar to the euro, remaining fairly constant and now resting between its upper bound and its three-month average.

Additional Reading

Euro zone business activity contracted in April as costs rocketed, PMI shows

Euro zone business activity fell in April, with the PMI dropping below 50, which shows contraction. Costs for businesses rose quickly, with higher prices for materials and services. Manufacturing improved slightly, but the services sector weakened more, leading to an overall decline.