Foreign Exchange Daily Updates - Archive

Below is the foreign exchange market update (Feb 07/03).

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 07/03

This morning the better than expected US employment data, from 6% to 5.7%, enabled the US$ to make gains of between 0.4% against the Euro and the Swiss Franc and 0.6% against the British Pound. In the UK the worse than expected Industrial and manufacturing data had already had an impact. With US stock futures indicating a higher stock market this morning look for the US$ to follow stocks today. The snow in New York could also impact the market!

The US and European10 year bond yields are the same, so the interest rate differential benefit for the Euro is eroding. The European Central Bank is expected to cut rates in March. Add to this the view that the US$ is overbought, and the poor economic data out of Germany yesterday the Euro could have seen its top, not withstanding geopolitical pressures.

Precious metals and the Swiss Franc pulled back of their highs after the Powell speech Wednesday and the Canadian, Australian and New Zealand Dollars all gave up some of their recent gains. It appears that when the markets get any news that they perceive as "knowledge" (known as opposed to unknown) of what might happen on the Iraqi situation the US$ should benefit.

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 1.6220 - 1.6570
USD/CHF 1.3400 - 1.3780
USD/YEN 117.80 - 120.60
USD/MXN 10.70 - 11.00