Trans-Atlantic Exchange Rate Report for Aug. 28th – Sep. 4th
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 Aug. 28th – Sep. 4th, the Trans-Atlantic currencies had a mixed week. The Swiss franc (CHF) led the way, closing at 0.62%. The pound (GBP) finished second at 0.39%. The euro (EUR) also ended positive, closing at 0.20%. The Canadian dollar (CAD) was the only currency to finish lower, closing at -0.42%.
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 Aug. 28th – Sep. 4th, the Trans-Atlantic currencies mostly trended higher. The Canadian dollar (CAD) climbed above its upper bound. The Swiss franc (CHF) stayed between its lower bound and three-month average. The euro (EUR) climbed above its upper bound. The British pound (GBP) climbed above its upper bound.
Additional Reading
The article, published on August 25th, explains that the Canadian dollar weakened after trade talks between Canada and the U.S. broke down, leading Canada to announce retaliatory tariffs on roughly $20 billion worth of U.S. goods. The article notes that the tariff escalation raised concerns about the outlook for Canadian growth, which pushed the dollar higher against the CAD and reduced expectations for a Bank of Canada rate hike this year.
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