Trans-Atlantic Exchange Rate Report for Sep. 19th – 25th
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 Sep. 19th – 25th, the Trans-Atlantic currencies all finished higher. The Canadian dollar (CAD) led the way, closing at 0.95%. The pound (GBP) finished second at 0.71%. The euro (EUR) came in third at 0.50%. The Swiss franc (CHF) held up the least, closing at 0.33%.
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 Sep. 19th – 25th, the Trans-Atlantic currencies all pulled back sharply. The Canadian dollar (CAD) dropped below its lower bound. The Swiss franc (CHF) also dropped below its lower bound. The euro (EUR) fell below its lower bound as well. The British pound (GBP) fell below its three-month average, finishing between its lower bound and three-month average.
Additional Reading
The article, published on September 26th, explains that the US PCE inflation reading for August came in lower than expected at 2.2%, boosting confidence that the Fed has room to continue cutting rates. The article also notes that Canadian GDP grew faster than expected in July at 0.2%, giving the Canadian dollar an extra lift and helping all four trans-Atlantic currencies finish the week higher against the dollar.
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