Trans-Atlantic Exchange Rate Report for April 26th – 30th

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 26th-30th, the Trans-Atlantic currencies followed different paths but ended with similar results. The Canadian dollar (CAD) depreciated significantly at the start of the week but finished with a 0.09% decrease. The Swiss franc (CHF) appreciated by 0.70% but finished just below 0%. The euro (EUR) fluctuated for most of the week, finishing with a 0.09% increase. The pound (GBP) had a similar week to the Canadian dollar, ending with a 0.12% decrease.

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 26th-30th, three of the four Trans-Atlantic currencies shared a similar trend. The Canadian dollar (CAD) opened the week slowly, but surged in the latter half, ending above its upper bound. The Swiss franc (CHF) followed a similar path, below its three-month average early on, but passing it towards the end of the week. The euro (EUR), the outlier, remained fairly constant, ending just above its three-month average. The British pound (GBP) was similar to the first two, appreciating later in the week, landing just above its upper bound.

Additional Reading:

USD/CHF rises to near 0.7900 as safe-haven demand lifts US Dollar

The article explains that the Swiss franc strengthened as investors moved into safe-haven currencies amid rising global uncertainty. Increased geopolitical tensions and market volatility also boosted demand for the currency, pushing its value higher. This is what led to the rise on April 28th.