Trans-Atlantic Exchange Rate Report for August 2nd – 7th

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 August 2nd – 7th, the Trans-Atlantic currencies had a choppy week and mostly finished lower. The Canadian dollar (CAD) swung the widest over the course of the week before settling at -0.22%. The Swiss franc (CHF) held up best, finishing as the only currency in positive territory at 0.03%. The euro (EUR) struggled the most, closing lowest at -0.45%. The pound (GBP) followed a similar path to CAD, also closing at -0.22%.

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 August 2nd – 7th, the Trans-Atlantic currencies all moved higher over the period shown. The Canadian dollar (CAD) rose to a new multi-month high, moving above its band. The Swiss franc (CHF) climbed back above its lower bound. The euro (EUR) rose back above its three-month average. The British pound (GBP) also pushed back above its upper bound.

Additional Reading

Pound To Dollar Price Forecast: US Payrolls Could Extend GBP/USD Rally

The article, published on August 6^th, explains that the pound climbed against the dollar as softer U.S. economic data eased demand for the dollar as a safe haven. The article notes traders were also looking ahead to Friday’s U.S. jobs report, which could push the dollar down further if the numbers come in weak.