Foreign Exchange Daily Updates - Archive

Below is the foreign exchange market updates (February 21 2003).

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

Foreign Exchange Market Update:

Markets look to potential news from the coming weekend.

Market Update: Friday, February 21, 2003

The Foreign Exchange markets have a lot to focus on today. Overnight, Defense Secretary Rumsfeld said the US and UK have enough troops deployed to take action. Unilateral action is the worst market fear for the US Dollar.

The US trade deficit, which is at historically high levels, has been viewed as a negative for the US Dollar by some, but it is only at these levels due to oil prices. The US Consumer Price Index just released was as expected.

The G7 meeting this weekend is unlikely to provide us with anything new, but the markets do react to the G7statements from these meetings.

France has lowered its GDP forecast for this year so the Eurozone economies continue with negative news.

US stocks will continue to give direction to the Dollar.

The daily fluctuations of between 1/2% and 2% continue so please call your foreign exchange market advisor for the latest analysis.

Our longer term view is unchanged. The interest rate differential benefit for the Euro v 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 Dollar, Australian Dollar and New Zealand Dollars all strengthen if war with Iraq is more likely and loose value if it seems less likely.

The Yen continued to hold its recent gains as there has been no sign of Bank of Japan intervention since the 120.00 was breached.

Currency ranges for today:

EUR/USD 1.0780 - 1.0900
USD/CAD 1.5000 - 1.5100
GBP/USD 1.5880 - 1.6000
USD/CHF 1.3500 - 1.3640
USD/YEN 118.00 - 119.00
USD/MXN 10.85 - 11.10