Trans-Atlantic Exchange Rate Report for December 1st - 5th

By: Michael Horvath, The Quinnipiac University Global Economics Research Team

Trans-Atlantic Currencies Index

Source: Eurostat 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 December 1^st to December 5^th, the Trans-Atlantic currencies shared common themes in their performance against the US dollar. The Canadian dollar (red) declined in the beginning and end of the week, where it eventually finished down by 0.56%, despite an upward surge during the midweek. The Swiss franc (maroon) displayed a troubled start to the week, followed by a fluctuating midweek and end of week gain, finishing down 0.18%. The euro (blue) depreciated nearly the entire week, in spite of hopeful middle and end of week gains, it still finished with a sharp loss of 0.68%. The British pound (green) proved a volatile journey, falling in the beginning of the week, followed by a monumental gain surpassing that of the USD, where it experienced a sharp decline nearing the end, closing the week by being down 0.96%.

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.

Despite over a two monthlong fall, the Canadian dollar (CAD) has shown resilience over the last few weeks, now approaching its three-month high and exceeding its upper bound. The Swiss franc (CHF) continues to display fluctuating values on a week-by-week basis, however, resembling an overall decrease in value. The euro (EUR) and British pound (GBP) share a common trend as after a passive decrease over the last few months, they now reside at their three-month average.

Additional Reading

Canadian Dollar Rises to 10-Week High as Jobs Data Beats Estimates for Third Month

This article explains the triumphant increase in the Canadian dollar (CAD) strength over recent weeks due to economic factors such as unemployment, interest rates and exported goods. Investors view the economic data as a reinforcement of expectations for a significant 2026 interest rate decision.