Trans-Atlantic Exchange Rate Report for May 25th – 29th

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 25th-29th, all of the Trans-Atlantic varied in path. The Canadian dollar (CAD) appreciated for most of the week, then depreciated by 0.03%. The Swiss franc (CHF) fluctuated heavily, finishing at this week’s low of -0.51%. The euro (EUR) sharply declined at the start of the week, then fluctuated, ending at a 0.42% decline. The pound (GBP) also fluctuated, ending closer to positive, at -0.07%.

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 25th-29th, the Trans-Atlantic currencies followed different pathways. The Canadian dollar (CAD) bounced around this week, ending between its lower bound and three-month average. The Swiss franc (CHF) also fluctuated, but its value varied more, ending just below its upper bound. The euro (EUR) moved similarly compared to the Canadian dollar but finished just above its three-month average. The British pound (GBP) depreciated sharply at the beginning of the week, but recovered to just above its three-month average.

Additional Reading

Stocks gain, dollar weakens as court battle over tariffs take center stage

The Reuters article explains that the Swiss franc weakened after a U.S. court blocked major tariffs, which boosted investor confidence. As investors moved away from safer assets, demand for the Swiss franc decreased, causing its value to fall. The article also highlights how changes in economic and political developments can influence currency values by affecting investment behavior.