Trans-Atlantic Exchange Rate Report for May 3rd – 7th

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 3rd-7th, most of the Trans-Atlantic currencies followed similar paths. The Canadian dollar (CAD), the outlier, was similar to the other currencies to start, but in the latter half, it depreciated, ending at a 0.53 decrease. The Swiss franc (CHF) fluctuated the entire week, finishing at a 0.12 increase. The euro (EUR) was similar but ended just below the Swiss franc at a 0.04 increase. The pound (GBP) path was comparable to the previous two, ending with a 0.19% decrease.

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 3rd-7th, three of the four Trans-Atlantic currencies followed a similar path. The Canadian dollar (CAD), the outlier, depreciated the entire week, ending just above its three-month average. The Swiss franc (CHF) depreciated at the start of the week but later surged, finishing below its upper bound. The euro (EUR) moved very similarly but finished closer to its upper bound. The British pound (GBP) was similar to the previous two, but was more consistent, landing above its upper bound.

Additional Reading

Canadian dollar eases against greenback

The article notes that the Canadian dollar weakened slightly against the U.S. dollar as investors reacted to economic uncertainty and shifting interest-rate expectations. Despite the decline, stronger oil prices helped support the currency, keeping the Canadian dollar relatively stable.