Trans-Atlantic Exchange Rate Report for Sep. 5th – 11th

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 Sep. 5th – 11th, the Trans-Atlantic currencies all finished higher. The Swiss franc (CHF) led the way by a wide margin, closing at 0.77%. The Canadian dollar (CAD) finished second at 0.41%. The euro (EUR) came in third at 0.32%. The pound (GBP) held up the least, closing at 0.20%.

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. 5th – 11th, the Trans-Atlantic currencies all continued moving higher. The Canadian dollar (CAD) climbed above its upper bound. The Swiss franc (CHF) stayed between its lower bound and three-month average. The euro (EUR) climbed above its upper bound. The British pound (GBP) climbed above its three-month average, finishing just below its upper bound.

Additional Reading

Swiss Franc Rally Supercharged by Search for Safe Havens

The article, published on September 11^th, explains that the Swiss franc surged as investors moved into safe-haven assets amid rising geopolitical risks and ongoing trade tensions. The article notes that the franc’s gains came even as markets priced in further rate cuts from the Swiss National Bank, showing how strongly investors preferred the franc as a safe place to hold money during a period of global uncertainty.