Trans-Atlantic Exchange Rate Report for July 29 – August 2
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 July 29th to August 2nd, the performance of Trans-Atlantic currencies against the US dollar varied. The Canadian dollar (red) depreciated at the beginning and end of the week, and despite midweek gains, finished down by 0.44%. The Swiss franc (maroon) had a rough start but appreciated throughout the week, ending with a 0.89% gain. The euro (blue) and British pound (green) followed similar paths; the euro depreciated by 0.32%, while the pound, experiencing sharper losses on Friday, declined by 0.99%.
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.
Despite a slight depreciation this week, the Canadian dollar (CAD) has experienced a nearly month-long strengthening in value. In contrast, despite its slight appreciation this week, the Swiss franc (CHF) has reached a new low, plummeting far below its lower bound. The Euro (EUR) has fallen from its average to below its lower bound, while the British pound (GBP) has recovered value over the last two weeks and currently rests at its three-month average.
Further Reading:
Middle East tensions and disappointing US jobs report draw investors to the franc, in opposition to the SNB’s goals as it eases interest rates.
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