Foreign Exchange Daily Updates - Archive

Below is the foreign exchange market update (Feb 10/03).

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 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 10/03

In Europe Germany, France and Belgium have vetoed a NATO proposal that would help defend Turkey, against a potential Iraqi attack. Turkey has moved for more talks, which continue this afternoon. This political wrinkle together with the release of German industrial production, which fell 2.6 % last month, had almost no effect on the currencies. In the UK the better than expected Trade data showed a shrinking deficit, this helped the Pound strengthen.

The interest rate differential benefit for the Euro vs the US$ is eroding and with the European Central Bank expected to cut rates in March. Together with the poor economic data out of Germany today 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. Any perception by the markets that there is "knowledge" of what might happen on the Iraqi situation and the US$ should benefit. BUT the suggestion of US/UK only action on Iraq will be US$ negative. Any negative For the US also weakens the Mexican Peso.

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 today:

EUR/USD 1.0680 - 1.0900
USD/CAD 1.5120 - 1.5350
GBP/USD 1.6220 - 1.6350
USD/CHF 1.3410 - 1.3780
USD/YEN 117.80 - 121.00
USD/MXN 10.80 - 11.10

Weekly Foreign Exchange Report .... Feb 10/03

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