Foreign Exchange Daily Updates - Archive

Below is the foreign exchange market update (Feb 11/03).

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.

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Weekly Foreign Exchange Report .... Feb 11/03

The Euro loses Value

The Euro lost value as Euro block credibility was hurt on the Turkish defense by NATO issue, and yesterday's continuing poor economic data from Germany. With France, Germany and Russia pushing to expand inspections, and the Iraqi acceptance of U2 spy plane flights, hope that war is avoidable has helped the US Dollar strengthen.

Both the Swiss and European Central banks said today that 2003 growth estimates will have to be lowered.

Federal Reserve Chairman, Alan Greenspan, will be testifying on the economy. We expect nothing new but the Markets will hang on every word.

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. The Euro could have seen its top, not withstanding geopolitical pressures.

Precious metals, the Swiss Franc, the Canadian, Australian and New Zealand Dollars all pulled back as the new view on Iraq make war less likely. As we have said 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, and would also weaken the Mexican Peso.

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 1.0620 - 1.0780
USD/CAD 1.5120 - 1.5350
GBP/USD 1.6080 - 1.6280
USD/CHF 1.3620 - 1.3800
USD/YEN 120.80 - 122.50
USD/MXN 10.80 - 11.10