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:

Markets quiet ahead of earnings season

Market Update: Wednesday, April 16, 2003

Please note that the next market update will be Monday, April 21st

The US Dollar continues to fail to gain any positive momentum from US stocks, which show a slow positive trend. The Foreign Exchange markets are more focused on what the US economy will do in the future. With manufacturing showing little forward movement from yesterday's Industrial Production data, the pick up in this sector seen earlier in the year seems to be ending. This mornings Housing Starts data was higher than generally expected and appears one of the bright points in the US economy.

The Bank of Canada's action yesterday raising interest rates ¼% to 3.25% because of inflation concern's, helped the Canadian Dollar reach its highest level against the US Dollar since 1999.

The US continues to show no inflation with the Consumer Price Index coming in at the expected level.

If the US Dollar continues to not strengthen as US stocks rise on positive earnings data, the conclusion must be that investment cash flows from outside the US are not returning now the uncertainty with Iraq is over. This raises the question, is the possible Syria situation holding back the return of such investment in the US? The overnight strength in the Swiss Franc indicates this might be the case.

The US Dollars linkage with the stock markets has loosened back to its pre war correlations as the markets again focus more on the 1st. Q results and economic fundamentals.

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 1.0780 - 1.0900
USD/CAD 1.4460 - 1.4550
GBP/USD 1.5680 - 1.5800
USD/CHF 1.3820 - 1.3970
USD/JPY 119.20 - 120.80
USD/MXN 10.50 - 10.75