Trans-Atlantic Exchange Rate Report for April 6th – 9th

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 6th-9th, the Trans-Atlantic currencies followed a similar path and outcome. The Canadian dollar (CAD) appreciated nearly the entire week, finishing with an 0.88% increase, the lowest of the currencies. The Swiss franc (CHF) surged early in the week and closed at 1.26% appreciation. The euro (EUR) followed a similar path, appreciating early and ending with a 1.54% increase. The pound (GBP) surged at the start of the week and slightly appreciated to end the Thursday with the greatest increase of 1.84%.

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 2nd-6th, the Trans-Atlantic currencies shared a similar pattern. The Canadian dollar (CAD) posted a small increase, ending just above its lower bound. The Swiss franc (CHF) also rose slightly, moving from 1.24 to 1.26, a 0.02 increase, and settling between its middle and lower bounds. The euro (EUR) remained relatively constant, though it appreciated slightly. The British pound (GBP) saw a slight increase in value, resting just beneath its three-month average.

Additional Reading

Pound heads for biggest gain in three weeks after US/Iran ceasefire

The British pound had its biggest gain in 21 days following an agreement between the US and Iran for a two-week ceasefire. On April 8th, it reached its highest value of $1.34 since March 23rd. Compared to the euro, the pound was marginally stronger, as the euro depreciated by 0.02%.