Daily Forex Fundamentals – August 19, 2011

What’s on the Economic Horizon

U.K. Public Sector Net Borrowing Anticipated to Drop to 0.4B
Canadian Core CPI Seen at 0.2%

U.S. Dollar (USD)

Ain’t no thang but a chicken wing! With risk aversion taking over the markets, investors bought up the dollar like good ol’ Wingstop wings! EUR/USD closed almost 100 pips lower to finish at 1.4336. Meanwhile, AUD/USD came tumbling down as well, losing 160 pips to end the day at 1.0395. Read more…

Euro (EUR)

The euro got heavily beaten by the lower-yielding currencies during yesterday’s trading as risk aversion loomed over the markets. EUR/USD tumbled from a high of 1.4452 to a low of 1.4271 before closing at 1.4336. Meanwhile, EUR/JPY closed 25 pips below the 110.00 handle. Keep reading to find out whether we’re in for more euro weakness today. Read more…

British Pound (GBP)

And the pound’s five-day winning streak goes out the window! Gloomy retail sales data and risk aversion teamed up to take the British currency down as GBP/USD fell 33 pips on the day. Likewise, GBP/JPY ended 18 pips lower at 126.42. Will the pound end the week on a low note? Read more…

Japanese Yen (JPY)

Tight trading for the yen versus dollar, as USD/JPY stuck within a range of just 26 pips. It seems as if traders are just too scared to bring USD/JPY past the 76.50 mark, in fears of getting wiped out by another BOJ intervention. Are those fears warranted? Read more…

Canadian Dollar (CAD)

Boom, it’s on! After days of consolidating, USD/CAD finally broke out of the descending triangle and reached a high of .9940. The pair closed at .9887, which was 90 pips above its .9797 day open price. Can it keep up its rally until parity? Read more…

Australian Dollar (AUD)

Risk aversion is the name of the game baby! With stock markets slumping in Europe and in the U.S., higher yielding currencies like the Aussie went down under in yesterday’s trading. AUD/USD dropped 160 pips to finish at 1.0395. Could the bears be gearing up for a run back to parity? Read more…

New Zealand Dollar (NZD)

The New Zealand dollar went down, and boy, did it go down hard! NZD/USD practically erased one week’s worth of rallying as the pair dove 134 pips down to .8210. That’s a 2% drop against the Greenback! And the selloff doesn’t look like it’s over yet, either! Read more…

Swiss Franc (CHF)

The Swissy pretty much gave as much as it got yesterday, chalking up mixed results against its major counterparts. While USD/CHF inched 42 pips higher, EUR/CHF slid down 19 pips. Will it get more consistent results today? Read more…

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1 comment

  1. Moraru Cosmin

    Why wont you cover XAU (gold) also ?  

    i made over 100 Euro, from gold alone yesterday …. its one of the most consistent rising comodities.

    a bubble? most likely, but in no way in the measure by which its counterparts su.c.k. so big … hence why it wont dip too much too soon


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