CURRENCY IMPACT REPORT
European companies report negative currency impacts three times higher than that of the previous quarter. Collectively, North American and European companies quantified $22.93 billion in negative currency impacts, with North American companies accounting for only 1.6% of the impacts.
European companies continue to see an increase in quantified negative currency impacts, reporting an increase in impacts of $2.5 billion over the previous quarter. As impacts in Europe rise, North American corporations have experienced another quarter with negative impacts below $1.5 billion.
European multinationals reported the largest currency impact since Q2 2015, with 26 companies disclosing a collective $4.27 billion in impacts.
In an up-tick from the trend of decreasing volatility and negative FX impacts over the previous five quarters, Q2 2017 has shown an increase in negative impact by $740 million, with North American and European corporates quantifying a total negative impact of $7.44 billion.
The continuation of low negative revenue impacts does not signify an end to currency volatility – just the progression of a pattern of low volatility that leaves unsuspecting corporates susceptible to risk when the next spike in volatility occurs.