Foreign Exchange Daily Updates - Archive

Below is the foreign exchange market update (Feb 06/03).

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.

Visit www.Cambridgefx.com daily and stay up to date on factors that affect foreign exchange rates. Follow these links to see the latest key currencies, US exchange rate and Canadian exchange rate

Weekly Foreign Exchange Report .... Feb 06/03

The US Dollar did get relief from the presentation of Colin Powell, US Secretary of State, to the UN on Wednesday, but it proved to be short lived as the other key UN voting countries appeared fairly unreceptive to the evidence, and US stocks could not hold on to the gains made after the speech.

In the UK overnight the Bank of England unexpectedly cut interest rates ¼% to 3.75% and the Pound now looks weak against the Euro as the interest rate differentials with Europe have closed up. The European Central Bank left rates unchanged.

The view that the US$ is overbought, and the poor economic data out of Germany today are helping slow the Euro's gains.

Precious metals and the Swiss Franc pulled back of their highs after the Powell speech yesterday and the Canadian, Australian and New Zealand Dollars all gave up some of their recent gains. This leads me to believe that anything that the markets perceive to be as knowledge of what might happen on the Iraqi situation will be positive for the US$.

Japan is still maintaining surveillance of its currency leaving the threat of intervention alive.

The foreign currency markets only intermittently focus on economic data, and stocks, so it is best to call your foreign exchange market advisor for the latest analysis.

Currency ranges for this week:

EUR/USD 1.0680 - 1.0940
USD/CAD 1.5120 - 1.5350
GBP/USD 1.6300 - 1.6570
USD/CHF 1.3400 - 1.3780
USD/YEN 117.80 - 120.60
USD/MXN 10.70 - 11.00