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 dollar rate and Canadian dollar rate

Foreign Exchange Market Update:

US Dollar follows Stocks Down

Market Update: Wednesday, April 30, 2003

The Consumer Confidence Data issued yesterday was much better than the high expectation and the stock market initially rallied accordingly. After the rise in stocks on Monday, the 88 point gain caused by the good data was too much for the stock market to pass up, and they came in and took their profits selling the DOW into negative territory. The Dollar followed stocks and after having good initial gains gave them all back and closed the day at its weakest level against most currencies.

The market is also factoring in a bad US employment number which will be released Friday.

The markets will now focus on today's Chicago Purchasing Managers Index. Alan Greenspan will testify on the economy today and at a number of Central Bank meetings this week Interest Rate expectations should be made clearer.

Overnight the business Sentiment and Consumer sentiment continued to show a slowing European economy.

The Canadian economy continued to grow for the 17 month, with the February GDP +.2% as expected, driven by new car and house sales. With high interest rates attracting funds and the strongest economy, by growth, in the G10 group of industrialized nations the strong Canadian Dollar could be here to stay for a while.

The Mexican Peso continues to strengthen as the balance of payments in its favor mean there are more buyers of Pesos for tax payments etc. than there are buyers of US Dollars.

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 1.1065 - 1.1180
USD/CAD 1.4320 - 1.4480
GBP/USD 1.5880 - 1.6000
USD/CHF 1.3550 - 1.3650
USD/JPY 119.00- 120.00
USD/MXN 10.20 - 10.45