Trans-Atlantic Exchange Rate Report for Oct. 10th – 16th
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 Oct. 10th – 16th, the Trans-Atlantic currencies all finished lower. The pound (GBP) fell the most, closing at -0.82%. The Canadian dollar (CAD) and euro (EUR) finished close together at -0.46% and -0.43%. The Swiss franc (CHF) held up best, closing at -0.27%.
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 Oct. 10th – 16th, the Trans-Atlantic currencies all continued falling. The Canadian dollar (CAD) dropped below its lower bound. The Swiss franc (CHF) also fell below its lower bound. The euro (EUR) dropped below its lower bound. The British pound (GBP) fell sharply below its lower bound.
Additional Reading
The article, published on October 16th, explains that hotter-than-expected US CPI data on Tuesday October 14th, combined with weaker UK inflation and a drop in eurozone industrial production, boosted the dollar against all four currencies. The article notes that strong US retail sales on Thursday reinforced the case for the dollar, with the pound falling the most as UK economic data disappointed on both inflation and growth fronts.
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