Trans-Atlantic Exchange Rate Report May 26 - May 30

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.

For the week of May 26th – May 30th, the Trans-Atlantic currencies largely moved together against the U.S. dollar with half ending the week weaker.  The strengthening currencies include the Swiss franc (CHF), rising by 0.12% over the week and the British pound (GBP) strengthening by 0.02%.  The other currencies showed declines. The Canadian dollar (CAD) dropped 0.17%, and the euro (EUR) showed the biggest loss this week, declining 0.34%. Altogether, the changes were relatively minor with none exceeding a 0.5% change and the split equally between increases and decreases for the currencies we follow.

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 March through early June, the Trans-Atlantic currencies show an upward trend against the U.S. dollar. The Canadian dollar (CAD) and Swiss franc (CHF) show the most gains, while the British pound (GBP) and euro (EUR) have less significant growth. Overall, this continued momentum from all four groups reflect ongoing weakening of the US Dollar with the biggest break in the trend coming around April, likely due to changes in American tariff and trade policy.