Trans-Atlantic Exchange Rate Report for January 5th - 9th

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 January 5^th – 12^th, the Trans-Atlantic currencies shared a common outcome with little variation in their journeys. The Canadian dollar (red) appreciated the entire week, surging between the 7^th and 8^th, ending the week up 1.09%. The Swiss franc (maroon) shared a similar journey, though with a smaller magnitude, appreciating significantly at the end of the week, then ending up 0.87%. The British pound (green) experienced a neutral beginning of the week before depreciating during the midweek, then increasing through the closing days, finishing at a positive 0.19%. The euro (blue) displayed the greatest beginning week by magnitude, then reducing through the midweek, later climbing, ending the week at an increased 0.68%. 

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.

Since the New Year, all currencies have displayed a decrease in exchange rate. The Canadian dollar (CAD) fell from 0.730 beginning the year, to now residing below 0.720. The Swiss franc (CHF) displayed struggles closing the year that would continue, the exchange rate now comparing to the three-month average, falling from its previous three-month peak. The euro (EUR) depreciated since the New Year, falling from its previous peak of 1.1796 to 1.1659. The British pound (GBP) displayed the great resilience of the Trans-Atlantic currencies as it decreased by the least magnitude, now residing at a value comparable to mid-December.

Additional Reading:

US Dollar vs Euro

The article discusses the recent movement of the EUR against the USD, which fell over the past week as the USD strengthened. The euro ended the week at approximately 1.1640 with a 0.7% loss against the dollar. Despite uncertain economic indicators in the US, specifically in the job market, and positive indicators of consumer consumption in the Eurozone, the dollar remained in strong demand, preventing an increase in the euro exchange rate.