Foreign Exchange Daily Updates - Archive

Below is the foreign exchange market update (Feb 26, 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.

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Foreign Exchange Market Update:

Geopolitics is the main market focus today.

Market Update: Wednesday, February 26, 2003

With the UK Parliament voting today on the Iraqi issue, the French Assembly also examining the effect on the UN and Franco US relations because of Chirac's stance, and meetings between the Spanish and French leaders and the German and Russian leaders, any change in stance will affect the currency markets.

It was very quiet overnight with most currencies trading in tight ranges.

Rumors of possible intervention by the bank of Japan to stop the yen from strengthening are as yet unsubstantiated but should stop $/JPY from going below 117.00.

The Swiss National bank said they might intervene if the CHF strengthened further.

German Q4 GDP was better than expected at +0.5% but the Euro did not strengthen on the news, maybe because the markets are now looking for the European Central Bank to drop rates a ½% in March.

UK annualized GDP was revised down to 2.1% from 2.2% and the pound strengthened!!

Yesterday's Consumer Confidence data was much worse than expected and the US stocks ended higher on the day, so the whole picture is very unclear today.

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. With daily currency fluctuations of between 1/2% and 2% continuing please call your foreign exchange market advisor for the latest analysis.

Currency ranges for today:

EUR/USD 1.0680 - 1.0820
USD/CAD 1.4875 - 1.5000
GBP/USD 1.5680 - 1.5880
USD/CHF 1.3520 - 1.3620
USD/YEN 116.80 - 118.20
USD/MXN 10.90 - 11.15