Trans-Atlantic Exchange Rate Report for March 4 – March 15
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.
In the two-week period spanning March 4th to March 15th, Trans-Atlantic currencies generally appreciated against the US dollar. The Canadian dollar (represented in red) appreciated in value by nearly one percent in the latter half of the first week. With a slight loss of value in the second week, it ended the period up by 0.27%. The Swiss franc (in maroon) trended similarly, but greater losses on Friday left its value equal to where it began two weeks ago. The Euro (in blue) and British pound (in green) followed a similar trend as well, but with more pronounced gains in value over the first week. They finished the period up by 0.73% and 0.95%, respectively.
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 last two weeks have seen significant movement in the three-month trend graphs. The Canadian dollar (CAD) rose from below its lower bound to briefly meet its three-month average but fell once again to the lower bound. The Swiss franc (CHF) continues to hover near its lower bound, with some slight movement below and above it. Over the past two weeks, the Euro (EUR) jumped from its lower bound to near its upper bound and then dipped slightly towards its average. The British pound (GBP), which had been between its average and lower bound, spiked far above its upper bound. Though it has come down somewhat, it is still at its upper bound. The peak it reached was even higher than the value it reached during the holiday season.
Further Reading:
CNBC article discussing the impact of Fed Chair Powell’s testimony before Congress last week.
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