Foreign Exchange Daily Updates - Archive

Below is the foreign exchange market updates (April 02 2003).

Note: The weekly foreign exchange updates give you a foreign exchange expert trader's view of the volatile foreign exchange markets. It is a great source of insight into the complexities of foreign exchange rates and issues. It is a valuable source of information with respect to the factors that affect foreign exchange rates at the macro level.

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Foreign Exchange Market Update:

Positive war news helps the US Dollar.

Market Update: Wednesday, April 2, 2003

The US Dollar strengthened overnight as progress reports from Iraq emerged.

With Europe moving their clocks forward a week before North America this year, when at 2 pm EST. Saddam did not appear on Television, as scheduled, the European Stock and Foreign Exchange markets had all finished for the day, and had no chance to react as we did in the North America. This left the Euro Zone Stocks to rally this morning on a combination of the Saddam's non appearance and the positive news of progress in Iraq overnight. The DAX (German) stocks were up nearly 4% for example, as all the stock indices reflected hopes that the war would be shorter then previously thought.

In Europe the retail sales data showed an unexpected jump at up 2.5% but was ignored, with the markets focusing on the Iraqi news. The US Dollar had also fallen 4% in the last week so it is not surprising that there should be such a sharp pull back from the markets oversold position.

With the oil strike in Nigeria over and hopes of the shorter war oil declined as did gold and the Swiss Franc.

The US Dollar correlation with stocks remains very strong.

The war and its perceived success compared to expectations should remain the principal market driver followed by the geopolitics associated with the war and economics will take a back seat.

With daily foreign currency volatility continuing to be higher than usual, please call your foreign exchange market advisor for the latest analysis.

Currency ranges for today:

EUR/USD 1.0720 - 1.0880
USD/CAD 1.4720 - 1.4850
GBP/USD 1.5620 - 1.5820
USD/CHF 1.3620 - 1.3780
USD/JPY 117.80 - 120.20
USD/MXN 10.50 - 10.80