Foreign Exchange News Updates - Archive
Below
are the foreign
exchange market updates.
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 dollar rate
Foreign
Exchange Market Update:
US
Dollar suffers as Central Banks Leave Interest
Rates Unchanged
Market
Update: Thursday, May 8, 2003
On
Tuesday The Federal Reserves statement gave
us a weakening bias suggesting an interest
rate cut if there is no change in the US
economy. This led to the market view that
interest rate differentials could widen
against the US Dollar in the future so it
was again sold off. Today The Bank of England
shortly followed by the European Central
Bank decided to leave their interest rates
unchanged. The consensus is that with the
German Economy in a severe decline the ECB
should have cut rates, but they rarely do
2 months in a row, even if it is needed.
Interest rates now stand at UK 3.75%, Europe
2.5% and the US 1.25%. After the rate decisions
both the Pound and the Euro gained against
the US Dollar. Funds are flowing to the
higher yielding currencies as on a global
basis. The US Dollar lost 1 % against the
Euro and ½% against the Pound this
morning.
The
Canadian Dollar continues to benefit
from high interest rates attracting funds,
and the strongest economy, by growth, in
the G10 group of industrialized nations.
The
Mexican Peso continues to strengthen
as the balance of payments in its favor
mean there are more buyers of Pesos for
tax payments, payrolls etc. than there are
buyers of US Dollars.
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
1.1380 - 1.1520
USD/CAD 1.3820 - 1.4100
GBP/USD 1.5920 - 1.6080
USD/CHF 1.3000- 1.3280
USD/JPY 115.50- 116.80
USD/MXN 10.10 - 10.35
Foreign Exchange Report .... May 08/03
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