Trans-Atlantic Exchange Rate Report for January 8 – 12

By: Dan Hogan, 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.   

For the week of January 8th – January 12th, the Trans-Atlantic currencies exhibited significant performance variations against the USD. The British pound (Green) remained robust throughout the entire week, experiencing an appreciation of almost 0.8%. In contrast, both the Canadian dollar (Red) and Swiss franc (Maroon) did not demonstrate as strong a performance, with both currencies weakening by just under 0.2% against the greenback. Rounding out the group, the Euro (Blue) recorded a moderate 0.3% increase in value against the USD. While there was nearly a full percentage point of variation across the entire group, there were no notable extreme movements of interest, as each currency continues to fluctuate.

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.  

For the week of January 8th – January 12th, all currencies maintained positions either at or above the upper standard deviation. Despite experiencing a slight depreciation against the USD, both the Canadian dollar (CAD) and Swiss franc (CHF) did not induce significant shifts in the three-month rolling average but continue to exhibit improved performance compared to the past few months. The modest upswing in the British pound (GBP) contributed to a noticeable upward movement in the center line, as the currency has consistently held steady above its upper bound. Additionally, the Euro (EUR) concluded the week at its upper bound for the second consecutive week, with its robust performance continuously elevating the rolling averages. All currencies remain robust against the USD, trading at favorable levels for their respective local currencies.

Additional Reading:  

The following article covers more analytical insight and picks key reports to watch for to indicate how the USD will perform: https://www.fxstreet.com/currencies/gbpusd