Daily Forex Fundamentals – August 11, 2011

What’s on the Economic Horizon
Australian jobless rate up from 4.9% to 5.1%
U.S. trade balance and jobless claims due
Canadian trade deficit widened in June?

U.S. Dollar (USD)

Risk aversion? Check! Stronger than expected U.S. data? Check! The Greenback got it all going yesterday as it chalked up gains against its major counterparts. EUR/USD closed 18 pips below the 1.4200 handle while GBP/USD edged closer to the 1.6100 level. The only currency that outpaced the Greenback yesterday was the Japanese yen, leaving USD/JPY to close at 76.83. Read more…

Euro (EUR)

Rumors are like wildfire; you are burned up before you know it! After its strong rally last Tuesday, the euro crashed and burned on the unfounded rumors that the SocGen, a large European and a major financial services company, was in financial trouble yesterday. While SocGen denied the rumors shortly after, the damage had already been done and the euro was unable to recuperate its losses. EUR/USD ended the U.S. trading session at 1.4178, more than 150 pips from its opening price that day. Read more…

British Pound (GBP)

Unlike the blockbuster movie last year, the “King’s speech” that we witnessed yesterday was anything but inspiring. The dovish comments from the BOE Governor Mervyn King sent the pound reeling down the charts. GBP/USD plunged by a whopping 142 pips to 1.6127, while GBP/JPY also fell down by 155 pips to 123.89. Read more…

Japanese Yen (JPY)

It looks like risk aversion put the “Yeah!” in the yen yesterday as the Japanese currency managed to score gains against the higher-yielding currencies and the U.S. dollar. USD/JPY sank further below the 77.00 support level and closed at 76.83 while EUR/JPY landed 5 pips below the 109.00 mark. Is the Japanese yen in for more gains today? Read more…

Canadian Dollar (CAD)

Risk aversion remained the main focus of the market yesterday as concerns of euro zone’s debt rating and the U.S. financial situation intensified again. As usual, the result was a decline in the Loonie’s value versus safe haven currencies like the Greenback and the yen. USD/CAD closed the U.S. trading session at .9950, 160 pips higher from its opening price that day. Read more…

Australian Dollar (AUD)

After pulling up and gasping for air the other day, the Aussie made another sharp dive against the U.S. dollar and the Japanese yen yesterday. AUD/USD closed almost 200 pips below its 1.0374 open price while AUD/JPY sank below the 80.00 handle and ended at 78.32. Read more…

New Zealand Dollar (NZD)

KABOOM! After enjoying a slight rally against the Greenback yesterday, the Kiwi was sent straight back down in the charts as risk aversion once again plagued the high-yielding currencies. NZD/USD dropped by a solid 302 pips, ending the day at .8081. Read more…

Swiss Franc (CHF)

Expansion of bank deposits? Pfft. Not even that is going to rain on the franc bulls’ parade! Despite the SNB’s announcement yesterday, traders continued to push the safe-haven franc to lows against its major counterparts. USD/CHF gave up another 39 pips at 1.1726 while EUR/CHF lost 45 pips at 1.0308. Read more…

Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.

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Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!