Trans-Atlantic Exchange Rate Report for November 6 – 10

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 of November 6 – 10th, most currencies strengthened against the United States Dollar, posting moderate gains. The one exception to this week’s trend was the Canadian dollar (red), depreciating by just under 0.5% against by end of day on November 10th. Both the euro (blue) and Swiss franc (black) moved nearly identically together during the week, with each currency appreciating by 0.5% and 0.4% respectfully. To round out the Trans-Atlantic group, the British pound (green) peaked this week at a gain of 1.5% against the USD, only to lose most of the ground, closing on Friday up 0.2%.

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 6 – 10th, pre-established trends have started to solidify, as this past week only reinforces the emerging pattern. The Swiss franc (CHF) remains above the lower bound and continues to creep closer to the rolling three-month average. Similarly, the euro (EUR) has been appreciating against the USD for over the past month, and remains flirting with the rolling average mark. After its resurgence last week, the CAD fell back below the lower bound, as it appears to following the months long trend of depreciation. In contrast, the British pound (GBP) has started to strengthen after months depreciation and stagnation. Throughout all four currencies, the trends continue to evolve week to week, but recently have been solidifying in their own directions.

Additional Reading:

USD (General)

This FOREX article gives a more analytical insight into the USD’s performance this past week.