Trans-Atlantic Exchange Rate Report July 21st – 25th

By: Isabella Cortese, The Quinnipiac University Global Economics Research Team

Trans-Atlantic Currencies Index

Source: Eurostat 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.

Between July 21^st and July 25^th, all four tracked currencies experienced an initial downward trend followed by partial recoveries. The Canadian dollar (red) saw the steepest decline, dropping to about -1% by July 23^rd. The euro (blue) and Swiss franc (maroon) also fell sharply, reaching lows around -0.8% and -0.7% respectively, while the British pound (green) declined more moderately. Toward the end of the week, the British pound rebounded strongly, nearly returning to its original value by July 25^th. The Canadian dollar and Swiss franc also showed partial recoveries, though they remained below their starting points. Overall, the week reflected a mostly negative trend for foreign exchange values with signs of recovery in the final days.

Trans-Atlantic Historical Trends

Source: Yahoo Finance 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 early May to late July, all four currencies demonstrated overall appreciation against the USD, though with differing levels of volatility and momentum. The Canadian dollar (CAD) rose steadily from around 0.717 to over 0.735, showing frequent short-term fluctuations but maintaining a consistent upward trajectory. The Swiss franc (CHF) began near 1.20 and climbed to above 1.25 by late July, with particularly strong gains in early July, marking the sharpest late period rise among the four currencies. The euro (EUR) initially dipped below 1.12 in May but rebounded consistently through June and early July, peaking near 1.18 before a slight pullback. The British pound (GBP) also appreciated, starting around 1.32 and reaching a peak above 1.37 in July, though it experienced notable mid-July volatility and a brief decline before partially recovering. Overall, all currencies show an exchange rate appreciation.