Daily Forex Fundamentals – August 12, 2011

What’s on the Economic Horizon?


U.S. Retail Sales and University of Michigan Survey on Deck

Euro zone Industrial Production to Have Risen by 0.1%

U.S. Dollar (USD)

Due to varied results of economic data released, the dollar’s price action was as mixed as bag of nuts yesterday as it traded higher versus the franc, fell against the euro and the pound, and barely moved versus the yen. By the end of the U.S. trading session yesterday, the U.S. dollar index was sitting at 75.06, a mere 14 percentage points higher from its opening level. Read more…

Euro (EUR)

The candlesticks on the daily chart of EUR/USD are beginning to look a lot like Cyclopip’s favorite striped Christmas sweater! Thanks to risk appetite, the euro was able to take home the bacon, ending the day with a 47-pip gain at 1.4228. Read more…

British Pound (GBP)

Finally, a bit of breathing room! After three days of recording big losses, the pound finally put a stop to its steady decline as risk aversion eased yesterday. Cable rose 94 pips while GBP/JPY posted a 77-pip rise of its own. Is this a dead cat bounce or a reversal in the works? Read more…

Japanese Yen (JPY)

What a boring Thursday it was for the yen! The absence of tier 1 news reports from Japan kept the yen’s movement to a minimum yesterday. USD/JPY, for instance, ended the U.S. trading session at 76.86, just 3 pips higher from its open price during the Asian session. Read more…

Canadian Dollar (CAD)

After USD/CAD got rejected at resistance at the .9950 minor psychological handle, the pair just traded down to end the day 35 pips below its open price at .9883. Victory for the Loonie! Read more…

Australian Dollar (AUD)

Bad Australian jobs data? So what?!? Thanks to risk aversion subsiding, the Aussie was able to finally edge higher and recuperate some of its losses versus the safe havens yesterday. AUD/USD closed the U.S. trading session at 140 pips higher while AUD/JPY rose 110 pips. Read more…

New Zealand Dollar (NZD)

No back-to-back losses here! The Kiwi chalked up nice gains yesterday as improved risk appetite helped it erase some of its losses from Wednesday. NZD/USD joined the risk rally, climbing up 219 pips to close at .8306. Read more…

Swiss Franc (CHF)

Whoever said “Sticks and stones may break my bones but words can never hurt me,” obviously didn’t know the Swiss National Bank (SNB)! The Swiss franc was downright murdered on the charts yesterday as SNB Deputy President Thomas Jordan did a bit of jawboning. As a result, USD/CHF climbed 356 pips just as EUR/CHF rose 541 pips. Insane!!! Read more…

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

In forex trading, you get better odds at securing pips when your fundamental analysis is complemented by technical analysis.

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