Trans-Atlantic Exchange Rate Report for May 18th – 22nd

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 May 18th-22nd, all of the Trans-Atlantic varied in pathway. The Canadian dollar (CAD) appreciated for the majority of the week, ending with a 0.33% increase. The Swiss franc (CHF) fluctuated the entire week, finishing barely positive at 0.01%. The euro (EUR) was similar to the Canadian dollar, landing just below it, at an increase of 0.28%. The pound (GBP) was the outlier, depreciating by -0.44% for 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.

From May 18th-22nd, the Trans-Atlantic currencies followed different contours. The Canadian dollar (CAD) depreciated slightly, ending just above its lower bound. The Swiss franc (CHF) was the opposite, as it slightly appreciated during the week and finished above its three-month average. The euro (EUR) moved similarly but finished beneath its three-month average. The British pound (GBP), almost identical to the Swiss franc, appreciated throughout the week, ending between its upper bound and three-month average.

Additional Reading

UK business activity fell for first time in more than a year in May

The article discusses that UK business activity declined in May for the first time in over a year, raising concerns about the British pound and economy. Weak consumer spending and global tensions reduced business confidence and put pressure on the currency.