Foreign Exchange Daily Updates - Archive

Below is the foreign exchange market update (Dec 03/02).

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

Visit Cambridgefx.com daily and stay tuned with a daily foreign exchange updates and commentary. Follow these links to see the latest Canadian exchange rate and US exchange rate.

Weekly Foreign Exchange Report ....Posted Dec.03/02

Canadian Dollar Benefits from Solid US dollar

North America.................
With the US $ solid gains the Canadian dollar has benefited, as it usually does. If the US Dollar continues its run the CAD should continue to stay strong. The US releases the Purchasing Managers Index today. The data should show improvement, but if the consensus expectations on the PMI are too high and the data does not meet the over optimistic (for full report contact icohen@cambridgefx.com).

Europe................
Will the ECB lower rates by ½% on Thursday? Europe has mixed indicators. Today's Pan European Purchasing Managers data improved to 49.5 from 49.1 but September Retail sales fell 2.1% to the lowest level since March 2000. The US Dollar has gained ½ a Euro from Fridays close.......

Japan…….
Last weeks economic data was disappointing. Industrial production fell 0.3%, and the unemployment rate rose to a post war high of 5.5%. Finance Minister Mr.Shiokawa said the Yen was overvalued by up to 30% which would put the USD/YEN at 160. The Yen dropped by 1.75% from Fridays close. The rate broke the 200 day moving average level of 124 and should continue to weaken. If it does will it push through the previous high of 125.62.

UK............
The British Pound lost 2 cents on the bad UK budget news last week recovering 1 cent on Friday.The UK Purchasing Managers Data was a worse than expected 50 from 50.5 the Pound sank back 1/2% overnight.

Technically the Pound has topped out. Fundamentally the argument is being made that the strong investment in the UK securities markets may be coming to an end. (for full report contact icohen@cambridgefx.com)

...end Weekly Foreign Exchange Report ....Posted Dec.03/02