Trans-Atlantic Exchange Rate Report for Nov 27 – Dec 1

By: The Quinnipiac University Economics Research Team, Dan Hogan

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 the week of November 27th - December 1st, most of the Trans-Atlantic currencies appreciated against the United States Dollar. The British pound (green) peaked mid-week, posting gains of nearly 1.5% against the USD before falling to finish the week at a +0.7% gain. Both the Canadian dollar (red) and Euro (blue) saw similar results against the USD until Thursday, as the CAD rallied and the EUR depreciated, with each currency closing +1.0% and -0.2% respectively. Finally, the Swiss franc (maroon) enjoyed a steady strengthening against the USD throughout the week, finishing at a strong +1.1% on 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.

For the past week of November 27th – December 1st, the trends remain mostly positive for all currencies against the USD. The Swiss franc (CHF) continued its months-long climb, reaching a new three-month high, and remaining well above the upper bound. Similarly, the British Pound (GBP) continued to hover above the upper standard deviation mark. The Canadian dollar (CAD) has yet to break the upper bound, but inched closer yet again this week. Only the Euro (EUR) did not enjoy the gains as it fell a bit closer to the upper bound, but still remains higher than it has been over the past three months. Overall, all currencies continue to strengthen against the USD, as this rally has been carrying for three straight weeks now.