Trans-Atlantic Exchange Rate Report for February 26th – March 1st

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.  

By the end of the week spanning February 26th to March 1st, Trans-Atlantic currencies generally depreciated against the US dollar. The Canadian dollar (red) depreciated throughout the week, with its value down 0.68% by Friday. The Swiss franc (maroon) opened the week with a slight dip but recovered that value and more over the next three days, peaking 0.14% above its opening for the week. However, losses on Friday left the franc down by 0.51% for the week. The Euro (blue) followed a pattern similar to the franc, but its losses were less pronounced. By the close of the week, its value had declined only 0.2%. The British pound (green) gained 0.16% in the first two days of the week, but losses throughout the latter half of the week, particularly on Friday, left it down by 0.31% 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 general decline in value of the Trans-Atlantic currencies this week is reflected in their three-month rolling averages. The Canadian dollar (CAD) lost the most value this week and fell back to its lower bound. The Swiss franc (CHF), which has hovered at its lower bound for the last few weeks, fell slightly below its lower bound. The Euro (EUR), which looked to have an upward trajectory after reaching a low in the middle of February, fell back to its lower bound. The British pound (GBP), which reached its three-month average for the first time since a sharp decline at the start of the month, fell again, nearing its lower bound.

Additional Reading: 

Reuters article discusses the British pound’s depreciation this week as the market waited for inflation data: Sterling rise runs out of steam on cautious risk picture