Trans-Atlantic Exchange Rate Report for February 12 – February 16

By: Ryan Slattery, The Quinnipiac University Economics Research Team 

Trans-Atlantic Currencies Index 

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) and then indexed to be 100 at the start of the period.  

From February 12th to February 16th, all Trans-Atlantic currencies weakened slightly against the US dollar. The Swiss franc (maroon) saw the most change, peaking at a 1.5% fluctuation on Wednesday; however, throughout the rest of the week, it regained some value, ending the week with roughly a 0.65% change. The Canadian dollar (red) and Euro (blue) performed similarly during the first half of the week. Each currency lost value, experiencing a 0.8% fluctuation by Wednesday. Both currencies recovered value over the next two days, with the Euro showing a stronger recovery compared to the Canadian dollar. The Canadian dollar ended the week with only a 0.05% change, while the Euro concluded the week with a larger 0.23% change. The British pound (green) lost value at a slower but steadier pace throughout the week, with a 0.55% fluctuation by Thursday, but a slight strengthening of the pound on Friday left it with a 0.3% change for the week.

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. 

The slight weakening of the Trans-Atlantic currencies this week is somewhat reflected in their three-month rolling averages. The Canadian dollar (CAD)’s value is slightly below its three-month average. The Swiss franc (CHF) has fallen far below its lower bound; as the change in value this week was slight, this is likely more a function of the nature of the rolling average, rather than a reflection of a major change in value this week. The Euro (EUR) is also below its lower bound, albeit with a slightly upward trajectory. The British pound (GBP) crossed below its lower bound but currently rests above it.

Additional Reading: 

Yahoo Finance article discussing GDP stagnation as Bank of England seeks to curtail inflation: Britain falls into recession, with worst GDP performance in 2023 in years