Trans-Atlantic Exchange Rate Report September 29 – October 3

By: David R. Fredericks, 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 100 at the start of the period.

During the week of September 29 to October 3, the Trans-Atlantic currencies experienced a mixed performance, marked by early declines followed by partial recoveries. The British pound (green) weakened the most, falling by nearly –0.8% at midweek before ending around –0.7%. The euro (blue) and Swiss franc (maroon) followed similar patterns, each dipping by roughly –0.5% before modest rebounds. In contrast, the Canadian dollar (red) showed resilience—after a brief decline early in the week, it rallied strongly and finished as the only currency in positive territory by week’s end. Overall, the week was characterized by broad early-week weakness against the U.S. dollar, but improving sentiment in the latter half, led by the Canadian dollar’s late strength.

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 represents a rolling three-month average, while the upper and lower boundaries correspond to one standard deviation above and below that average.

From July through early October, the four major currencies have demonstrated distinct trends. The Canadian dollar (CAD) peaked above 0.735 USD in early July before trending downward through August and September, settling near 0.72 USD by October. The Swiss franc (CHF) rose steadily through late summer, reaching highs near 1.27 USD, signaling strong relative performance. The euro (EUR) has maintained a stable range between 1.16 and 1.18 USD, reflecting consistent market confidence. Meanwhile, the British pound (GBP) has been the most volatile, swinging from 1.37 USD in July to below 1.33 USD in August before rebounding to around 1.35 USD in late September. Overall, the Swiss franc and euro displayed steady strength, the Canadian dollar weakened modestly, and the British pound remained notably volatile throughout the quarter.