Trans-Atlantic Exchange Rate Report for December 8th - 12th

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 8^th – 12^th, the Trans-Atlantic currencies achieved a similar outcome in comparison to the US dollar. The Canadian dollar (red), depreciated nearly the entire week with a small increase during the midweek, finishing down a sharp 1.3%. The Swiss franc (maroon) displayed courage during the midweek as it reached a peak of 0.28%, before a significant end of week decline, closing at a loss of 1.07%. The British pound (green) and the euro (blue) shared similar journeys as both currencies were positive against the US dollar through the midweek, before they diminished over the following days. The British pound experienced a minor end of week loss where it ended down 0.27%, the euro’s loss however proved to be of greater magnitude as it diminished 0.73% on the week.

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.

Through the week of December 8^th – 12^th, all currencies continued their ascent with varying magnitudes. The Canadian dollar (CAD) reinforced its recent increase as it begins matching highs from September. The Swiss franc (CHF) surged this week as it begins approaching its upper bound from last week’s lower bound position. The euro (EUR) displayed a spike in value as it surpassed its upper bound from its prior three-month average. The British pound (GBP) showed a subtle increase in comparison to its counterparts; however, with recent gains, it has begun approaching its upper bound.

Additional Reading

SNB to hold policy rate at zero through 2026; negative rates unlikely, say economists: Reuters poll.

This article explores the current interest rate discussion taking place in Switzerland and the 2026 projections. The Swiss National Bank has decided against a change to its current policy rate as inflation nears 0%.