Trans-Atlantic Exchange Rate Report for October 30 – November 3

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 October 30th – November 3rd, there were mixed performances of the four trans-Atlantic currencies against the United States Dollar (USD). The Swiss franc (maroon) fell nearly continuously throughout the week, closing on Friday down about 0.8% against the USD. Both the Euro (blue) and British pound (green) moved nearly in tandem and both strengthened by 0.5% by the end of the week. Finally, the Candian dollar (red) saw a mid-week surge, recovering the half percentage point lost in the first half of the week, and saw a gain of 0.5% against the USD by the end of November 3rd.

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.

Over the past week of October 30th – November 3rd, trends for both the Euro (EUR) and British pound (GBP) continued, while both the Candian dollar (CAD) and Swiss franc (CHF) remain without a clear trend. EUR started to rebound throughout October and has continued after appreciating against the USD this past week. The franc has been surging back to the three-month average mark, after falling below the lower bound in October. For the GBP however, it continues to sit around its lower bound, with little movement throughout the past month. The strengthening of the Candian Dollar this past week has brought it back up to the lower bound, but the trend of depreciation for the CAD over the past few months remains. Each currency has started to split from one another, as some have started to rebound, while others either remain steady or continue to fall.

Additional Reading:

CHF / USD: FXStreet offers a technical forecast of the CHF / USD trading based on expectations of upcoming US reports.

EUR / USD: NASDAQ looks to give potential key movers in the EUR / USD trading by looking at important government reports.