Foreign Exchange Daily Updates - Archive

Below is the foreign exchange market updates (April 03 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:

Hopes of short a war, drives markets higher.

Market Update: Thursday, April 3, 2003

The US Dollar again strengthened overnight as progress reports from Iraq suggested that for now the allied forces are doing better than they had expected.

The European Central bank left interest rates unchanged. With more data from the service side of the Euro economy suggesting they are close to going into a recession, and unemployment at a 5 year high in Germany the lack of action again seems to suggest when they do act it will be too late.

The UK service industry data also fell below the expected level showing the UK economy continues to contract.

The US Dollar had 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.

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 1.0680 - 1.0820
USD/CAD 1.4650 - 1.4750
GBP/USD 1.5580 - 1.5720
USD/CHF 1.3700 - 1.3900
USD/JPY 118.50 - 120.20
USD/MXN 10.50 - 10.80